KARACHI, March 27: Cotton prices on Saturday eased by another Rs25 per maund as some of the ginners holding odd lots of low-mic lint sold in a bit haste.
Unlike the previous dull sessions, the ready offtake was fairly brisk including some big-lot deals as both mills and spinners made active covering purchases at the falling prices.
Some of the low-mic lots both from the central Sindh and southern Punjab cotton belts were sold at Rs2,750 on the higher side and Rs2,500 per maund on the lower side depending on the quality premiums.
Floor brokers said the fall appears to be a belated reaction to the last couple of sessions selling pressure on the world markets but some other claim it was the panic selling by some of the ginners.
"Those ginners whose holding capacity is limited are out to clear their unsold positions as despite a long wait, spinners appear to be in no obliging mood", they said.
After remaining conspicuous by their absence for a couple of sessions, mills and spinners re-enter the market and pick up a couple of lots and disappear for a week or so keeping ginners at their toes all the time.
Although some of the ginners in the upper Sindh and southern Punjab cotton belts are not inclined to sell fine and contamination-free lots below Rs3,000 per maund, most of them fail to find willing buyers.
"Some of the leading ginners with strong holding capacity are, however, not worried over the mill absence from the market and stick to their unsold positions but the chances of an increase in prices beyond the Rs3,000 level appear to be a bit bleak in the backdrop of bearish signal from the world markets", cotton analysts said.
They said the actual position of unsold stocks lying with the ginners will be known after the final crop figures are released by the Pakistan Cotton Ginners Association (PCGA), by the first week of the next month and that could well prove a turning point for the future direction of the market.
Meanwhile, New York cotton futures recovered from the recent lows caused by limit-losses owing to trade selling and were quoted higher by 0.70 and 0.94 cents per lb at 64.90 and 66.64 cents for both the ruling May and the forward July settlements respectively.
Official spot rates were lowered by Rs25 in line with the rate at which physical business was reported.
Ready offtake was active totalling about 10,000 bales, the following being some of the notable deals: 1,000 bales, Hasilpur at Rs2,900 to Rs2,950, 1,200 bales, Khanpur at Rs3,000, 200 bales, Rajanpur at Rs2,950, 1,000 bales, Sadiqabad at Rs2,500, 3,200 bales, Rahimyar Khan at Rs3,000, 200 bales at Rs2,850, 1,200 bales, Bagho Bahar at Rs3,000, 500 bales, Shahpur Chakkar at Rs2,675, 400 and 600 bales, Khairpur and Nawabshah at Rs2,750, and 400 bales, Akri at Rs2,700.