KARACHI, Sept 15: Cotton prices on Wednesday eased modestly from the overnight higher levels as some of the ginners liquidate their long positions followed by reports of steady arrivals of phutti into the ginneries.

New York Cotlook Index both A and B on the other hand was quoted higher at 58.10 and 56.50 cents per lb as compared to 57.00 and 55.25 cents a day earlier, showing an increase over the previous close.

Pakistani lint is quoted on the world markets in index B because of medium staple length and priced accordingly, dealers said. But ready off-take was relatively slow as after mid-session, ginners withdrew to the sidelines, indicating they were not inclined to further lower their asking prices, brokers said.

However, earlier in the session, some of them sold at a discount of Rs50 per maund at Rs2,250 as compared to an average overnight rate of Rs2,300 both for the central Sindh and central Punjab cotton, they said.

Market sources said ginners were a bit worried over more than average arrivals of phutti and growers' willingness to sell it at their option. Anticipating fresh pick up in arrivals, ginners decided to liquidate long positions fearing further decline in prices.

"The market is getting uncertain each session as both the grower and the ginner could not precisely decide how to react to the changing scenario", they said "an average fall of Rs50 or rise of the same amount in prices daily did not allow them to plan for the future".

"The market is following the line of New York Cotton futures", some other say. New York cotton futures on Tuesday were quoted lower by 1.60 and 1.94 cents at 51.45 and 50.45 cents per lb for both the ruling October and the distant December contracts respectively.

There was, however, no change in the local spot rates, which were again held firm at the previous level of Rs2,250 per maund. Ready off-take was active as till late in the evening about 15,000 bales, changed hands, the following being some of the notable deals:

SINDH VARIETY: 1,000 bales, Tando Adam at Rs2,250, 400 bales, at Rs2,240, 1,000 bales, Shahdadpur at Rs2,250, 600 bales, Sanghar at Rs2,250 and 400 bales, Nayabad also at this rate.

PUNJAB TYPE: 1,000 bales, Mian Channu, 1,000 bales, Burewala, 1,000 bales, Gojra, at Rs2,300, 400 bales, each Muridwala, Vehari, Moongi Bunglow, Arifwala, Jhang and Jehania at Rs2,300.