KARACHI, Aug 16: Cotton prices on Monday posted fresh decline of Rs50 per maund as ginners were not inclined to hold long positions and tried to sell new crop lots mostly in line with export parity levels of spinners and mills.

Owing to volatile world markets amid conflicting reports about the supply and consumption figures, local ginners were not inclined to hold long positions amid falling prices.

Lint prices have, during the last couple of weeks, steadily fallen from the seasonal peak levels owing partly to an active buying by the mills and partly to an uncertain future price outlook, brokers said.

Another bearish factor is steady arrivals of phutti into the ginneries and ready sales by the growers, which has, unlike the previous seasons, made the job of ginners more easy as far as the fixation of lint price is concerned.

That is why there is steady sailing on the new crop front as ginners sell the lint after adding overheads as was reflected by active ready business. "After having purchased lint at much higher rates to make up the local crop shortfall earlier this year, spinners and mills are now a bit cautious to make purchases at the higher prices", brokers said.

While the current crop was again neglected, most of the deals in the new crop were finalized between Rs2,200 and Rs2,225 per maund, showing a decline of about Rs200 per maund during the last couple of sessions.

Sudden pick up in arrivals of phutti after more ginneries resumed operations reflects that the new crop is in line with official crop projections. As a result, growers have also lowered their selling prices for phutti from Rs1,000 to Rs950-975 per 40 kg depending on the quality fearing further decline after the picking operations in the upper Sindh cotton belt resume, dealers said.

Official spot rates were further lowered by Rs50 per maund at Rs2,225, and as a result most of the deals in the ready section were done in line with them. Ready off-take was active as till late in the evening about 4,000 bales changed hands as under:

SINDH VARIETY: 600 bales, Tando Adam at Rs2,200, 200 bales at Rs2,225, 800 bales, Mirpurkhas at Rs2,200, 200 bales, Shahdadpur at Rs2,200 and 200 bales, Sanghar also at Rs2,200.

PUNJAB TYPE: 600 bales, Sahiwal at Rs2,200 to Rs2,250 and 200 bales, Jhang at Rs2,200.