KARACHI, Oct 13: Trading on the cotton market on Monday resumed on a subdued note as a section of ginners indulged in hasty selling fearing further fall in prices amid hectic trading.

It appears to be a belated bear reaction to the New York cotton futures, which had dropped to a new recent low below the resistance level of 50 cents per lb for the ruling December contract, analyst Naseem Usman said adding: “It is a sympathetic negative fallout of the world cotton market currently under turmoil owing to the crisis in the financial markets”.

He said the local prices may still be a bit higher as compared to the world rates but are expected to stay stable around the current levels based on local supply and demand factors.

But another analyst Muhammad Adil thinks the fall in prices may also be attributed to higher arrival of phutti into the ginneries for the month ended Oct 1, 2008, which showed an increase of half million bales as compared to last season’s comparable figure.

He said the future price trend is expected to be set by the growers, who would not allow further fall in prices after having invested heavily in the new crop in the form of higher cost of inputs.

About 50,000 bales changed hands at the falling prices between Rs3,300 to 3,450 per maund as spinners lifted all the lots offered for sale by the ginners on quality basis, they said.

There was virtual spinner run on each lot offered by some of the jittery ginners as was reflected by big lot business both in the Sindh and the Punjab lint.

Official spot rates were lowered by Rs75 per maund at Rs3,400 after a firm stance against the falling world markets during the last couple of sessions.

The following are some of the deals, which were gone through in the ready section late on Monday evening:

SINDH TYPE: 2,000 bales, each Shahdadpur and Tando Adam and 800 bales, Hala at Rs3,300 to 3,350, 1,200, 1,000, 12,00 bales and 400 bales, each Mirpurkhas, Khipro, Nawabshah and Hyderabad at 3,300, 1,400 bales, Sanghar at 3,300 to 3,325.

PUNJAB VARIETY: 1,200, 1,000, 500, 1,800, 1,000, 1,000 and 200 bales each, Fazalpur, Rahimyar Khan, Sadiqabad, Bahawalpur, Reaper, D.G. Khan, Choti and Faqirwali at 3,450, 1,600 bales, Haroonabad, at 3,425 to 3,450, 1,000, 1,200, 1,000, 400 bales, Chichawatni, Burewala, Mian Channu, at 3,375 to 3,400, 1,000 bales, Sahiwal at 3,350 to 3,400, 1,800 bales, Pak Pattan, 3,300 to 3,400, 400 bales, Vehari at 3,375, 800 bales, Bahawalnagar at 3,400, 400 bales, Hasilpur at 3,425, and 200 bales, Mongi Bangalow at 3,400.