KARACHI, June 27: Cotton prices further eased on Friday from the current higher levels on panic-selling by ginners following reports of steady arrivals of phutti into the central Punjab ginneries.

“What seems to have created panic among the ginners was the report that a ginner of the central Punjab sold a lot of 200 bales at Rs3,825 per maund for ready delivery,” show the details of the deal transmitted officially to the KCA.

“Both the lint and the phutti prices are expected to ease further during the next couple of sessions as four ginning factories have resumed new operations in the central Punjab cotton belt and some others may join them by the next week,” cotton consultant Naseem Usman said.

He said two factories in Sahiwal and one each in Arifwala and Haroonabad had already resumed ginning operations and were offering modest lot on ready basis.

Lint prices were quoted lower around Rs3,800 per maund from the early week peak level of Rs4,200 and that of phutti at Rs1,700 to Rs1,800 per 40 kg from the peak of Rs2,200.

However, there is no positive word from the spinners and mills on the developing situation, which will lower their production costs to make them competitive on the world textile market, ginners said.

Spinners said the ruling prices were still higher as compared to our export parity levels and only further decline could ease a bit of our export problems and arrest the fall in textile export.

New York cotton futures on Friday were quoted further higher by 1.11 and 0.88 cents per lb for both the ruling July and the new crop October contracts at 74.09 and 78.39 cents, respectively.

Fresh decline in official spot rates was halted as some of the spinners covered positions below Rs4,000 per maund.

The following deals were finalised on Friday: 1,600 bales, exporter-to-mill at Rs3,950, 491 bales Daharki at Rs3,800, 220 bales, Gothki at Rs3,700 and 400 bales, Hyderabad at Rs3,940.