KARACHI, April 11: Cotton market on Friday eased from the recent highs by Rs50 per maund as some of the ginners cleared their backlog of unsold stocks at the lower prices.

Market sources said that having disappointed by the prevailing stable prices around the current level of Rs3,300 to Rs3,550 per maund sans speculative rise owing to a short crop, some of the ginners tried to unload their holdings leading to decline of Rs50 per maund.

But some others said ginners held on to their unsold positions for the premium lots and sold inferior lots, which caused a decline in prices.

They said selling originated from the weak holders, who were keeping stray lots in the hope to get better prices and sold them as prices did not rise to their pre-determined price level.

However, the general view is that falling unsold stock of lint could push prices higher from the current levels but mostly for fine lots but as far as inferior lots are concerned they may show a modest sympathetic rise also but chances of speculative price flare-up appear to be a remote possibility.

Cotton analysts said as long as New York cotton futures maintained their upward drive, local prices could be influenced in sympathy toward close of the season but how far it is difficult to say.

But one thing is clear that rates of fine types, currently selling around Rs3,500 per maund may not fall as supply and demand factors are now in their favour, they said.

New York cotton futures maintained their upward drive and were quoted further higher by 0.90 and 0.89 cents per lb at 74.75 and 78.13 cents, respectively, for both the ruling May and the new crop July settlement.

Official spot rate on the other hand were revised downward after several weeks and was quoted lower by Rs50 per maund just in the wake of Thursday’s increase of Rs25.

Ready off-take was light totaling about 2,000 bales as under: 500 bales, Nawabshah at Rs3.150, 400 bales, Kandiaro at Rs3,300, 400 bales, Qazi Ahmed at Rs3,250, and 200 bales, Sadiqabad at Rs3,350.