KARACHI, Sept 6: Cotton prices on Monday eased further as ginners again indulged in hasty selling followed by reports of steady arrivals of phutti into the ginneries.

Most of the deals were finalized between Rs2,200 and Rs2,250 per maund as compared to Rs2,300 and Rs2,350 at the weekend session. The Punjab variety was also marked down by the same amount, but bulk of the business was confined to the central Sindh variety because of average mic, dealers said.

Floor brokers said higher than expected arrivals of phutti into the ginners for the month of August had altogether changed the future price outlook at least for the near-term.

There is a perception in some quarters of cotton trade that prices could ease further from the current levels as growers could not precisely decide how to react to the changing market outlook, they said.

"The next couple of sessions could be crucial for the market as by that time growers will decide whether to sell it at the falling prices or await for the official intervention to keep the prices well above the support rates," market sources said.

Indications are that growers will hold on to their stocks of phutti in an effort to get a fair price for their produce if prices fall further, they said. After having sold phutti at the highest-ever rate of Rs1,750 last season, the growers are hoping again to outwit spinners, but the situation during the current season has undergone a major change followed by predictions of bumper crops in the major producing countries, including Pakistan, they said.

"If the current crop estimates are correct it may be pretty difficult to increase the prices irrespective of holding back of stocks, says a leading ginner.

Both the ginners and spinners are terribly cautious about the price outlook, notably the latter who are covering their forward position against sales of cotton yarn and are not indulging in speculative trading or trying to build up long positions at the falling prices.

Meanwhile, reports reaching here from the central Sindh and Punjab cotton belts indicate that picking operations are in full swing, but the leading growers are holding back a good part of their fresh stock in an effort to sell it after prices rose from the current lower levels.

But on the other hand most of the growers are selling their stocks slightly below Rs1,000 per maund, fearing further decline in prices, dealers said. Official spot rates were marked down by Rs25 at Rs2,325, but in the ready section most of the deals were done below them.

Ready off take was comparatively slow as some of the ginners were not inclined to sell at the lower rates. However, stray lots in Sindh variety changed hands as under: 200 bales, Sultanabad at Rs2,200 and 200 bales at Rs2,225; 400 bales, Mirpurkhas at Rs2,200 and 400 bales at Rs2,250; 200 bales, Shahdadpur at Rs2,325; 200 bales, Tando Adam at Rs2,300 and 800 bales at Rs2,325; and 100 bales, Shahpur Chakkar at Rs2,275.