KARACHI, Sept 29: After remaining stable around Rs2,000 per maund, cotton prices on Wednesday eased as growers continued to flood ginneries with their newly picked up phutti.

Ginners also are not inclined to hold on to their unsold positions and pass on the buck to the spinners and mills, which are active buyers at the falling prices. "What seems to have created panic among the ginners was the reports that weaker links among them bailed themselves out after liquidating positions at the seasonal lows of Rs1,850 per maund", brokers said.

But it is unclear why ginners are not selling the lint to TCP at Rs2,159 and are dumping below Rs2,000 per maund to the second buyers, they ask. The steady inflow of phutti into the ginneries worries both the ginner and the grower amid fears that prices could fall further lower from the current levels.

That is perhaps why each day some new developments keep them at their toes all the time and despite having modest holding capacity most of them prefer to sell their stocks at the prevailing prices.

"There is general perception it would be pretty difficult for the TCP to hold the current price line and despite its presence on the market no one is inclined to derive strength from its presence and demonstrate his holding capacity even for a short-term", market sources said.

The current uncertainty about the future price outlook is also created by the highly volatile performance of the New York cotton futures, which fall by limit-losses only to rebound next day never allowing any one to plan for the long-term, they said.

An air of optimism, however, prevailed among the spinners and mills as was reflected by massive buying each session by them at the current levels, they said. Official spot rates were firmly held at the last levels of Rs2,050 but in the ready section most of the deals were done well below them.

New York cotton futures also suffered limit-loss of 2.35 for the ruling October settlement at 47.95, while the forward December delivery was marked down by 0.04 cents at 48.01 cents per lb.

Ready off-take was active as till late evening about 20,000 bales changed hands, the following being some of the notable deals: 600 bales, Tando Allyahyar at Rs1,850, 1,000 bales, Mirpurkhas at Rs1,850 to Rs1,875, 1,000 bales, Tando Adam at Rs1,900 to Rs1,955, 1,000 bales, Shahdadpur at Rs1,950 to Rs1,975, and 1,000 bales, Nawabshah at Rs2,025 to Rs2,050. About 10,000 bales from the Punjab ginneries changed hands between Rs2,050 to Rs2,075 per maund.