The Karachi cotton market witnessed a firm trading session with higher demand for fine lint and firm spot rate, traders at the Karachi Cotton Association (KCA) said on Tuesday.

The KCA kept the spot rate unchanged at Rs 5,600 per maund, floor brokers said.

Traders said mills bought fine grades to strengthen their inventories in Punjab stations on competitive rates, while fine stocks shrinked in Sindh stations.

Fine lint prices fetched around Rs 5,825 per maund in Punjab stations while second grade lint changed hands at major stations in Sindh at around Rs 3,200 per maund.

Spinners made deals for lint of all grades in Punjab and Sindh stations on competitive prices at around Rs 4,975 per maund and Rs 4,325 per maund, respectively.

Private sector commercial exporters also purchased lint of all grades at around Rs 3,625-Rs 4,100 per maund in Sindh and Punjab stations.

Sellers withholding contaminated lint around seven-10 percent in Punjab and Sindh stations offered their produce at around Rs 3,100 per maund and Rs 2,800 per maund, respectively.

The buyers and sellers in Punjab and Sindh stations also made compensatory deals at around Rs 4,450-4,150 per maund during the trading session.

“The correction in New York Futures market is instrumental for international as well as domestic lint prices,” said an analyst. “Lint grade issue besides slow arrival of cottonseed due to end of crop season 2012 and active Indian trading was still putting pressure on prices.”

Cottonseed was available in Sindh and Punjab stations at around Rs 2,150 per maund and Rs 2,700 per maund, respectively.

The New York July Futures 2012 closed at 74 cents per pounds and October Futures 2012 at 73 cents per pound. Cotlook A index was hovering around 89 cents per pound.