KARACHI, Nov 25: Cotton prices on Friday suffered fall ranging from Rs25 to Rs50 per maund in physical trading, as some of the leading ginners tried to clear the backlog of larger unsold stocks.

Spinners lifted all lots, including some big ones, totalling 8,000 bales at falling prices mostly from Punjab ginneries.

Although the selling remained orderly and did no assume an alarming proportion, the ginners seem to have a second thought on the negative side of larger unsold stocks to which well over Rs20 billion are tied, brokers said.

According to them, about 2m bales of unsold stocks were lying with ginners’ godowns and that could create financial problems for them in the weeks to come if prices fall from the current level in a volatile world market.

“The other negative factor is a slow mill offtake,” they said, adding: “Mill intake seldom exceeds 30,000 bales in a session as in normal trading session, it should average around 60,000 to 70,000 bales in the backdrop of a crop of 12m plus bales.”

The ginners, who have purchased phutti at lower rates and if the current level of Rs2,400 or slightly below it conforms to their parity level, they sell to lessen their financial burden, market sources said.

The unsold stocks with the ginners are higher as compared to the previous year despite a bumper crop last year and they are inclined to bail themselves out from their negative side.

“Prices could ease further as being sole buyers in the absence of the TCP, spinners and mills are operating in line with their export parity levels of textiles on the world market,” they said.

The other disturbing factor for the ginners is volatile New York cotton futures and their adverse impact on the local prices in case the spinners opt for imports at the lower levels.

Official spot rates did not show any change but in the ready section, prices eased from the overnight levels.

Ready mill offtake was on the higher side totalling 25,000 bales, the following being some of the notable deals: 8,000 bales, Bahawalpur, 2,000 bales, Rajanpur and 400 bales, Liaquatpur at Rs2,375; 2000 bales, each Alipur, Rahimyar Khan, Lodhran, Khanpur, 1,000 bales, Sultanpur and Sahbbirabad, and 600 bales, Mubarakpur at Rs2,400; 600 bales, Fazalpur at Rs2,380; 400 bales, each Bhakhar and Jahania and 1,000 bales, Samandri at Rs2,390; and 400 bales, Uch Sharif at Rs2,385.