KARACHI, Oct 31: Millers were active in the cotton market on Wednesday as almost 16,000 bales changed hands at prevailing prices.

The Karachi Cotton Association also kept its official spot price unchanged at Rs5,650 per maund.

In the ready market, prices witnessed a decline in Sindh as deals for 4,000 bales were finalised at Rs5,500 to Rs5,750. Brokers attributed this fall to an increase in phutti arrivals.

In Punjab, prices remained flat despite brisk buying activity as 11,800 bales were exchanged at Rs5,550 to Rs5,800.

Brokers said prices may come under pressure in the coming days due to falling international cotton prices following Hurricane Sandy in the United States.

US cotton futures closed down more than 2 per cent, as the market was unable to hold above the benchmark contract's 100-day moving average and dealers started to sell. The market fell as many dealers remained away from their desks after Hurricane Sandy roared over New York City and New Jersey.

Fears of a supply squeeze were no longer impacting the market, as brokers said there was a lot of cotton in the world.

The following transactions were reported on the ready counter on Wednesday:

SINDH VAREITY: 1,000 bales, Mirpurkhas at Rs5,500 to Rs5,590, 400 bales, Shahdadpur at Rs5,650, 600 bales, Tandoadam at Rs5,550 to Rs5,600 and 2,000 bales, Khairpur at Rs5,750.

PUNJAB TYPE: 400 bales, Bahawalpur at Rs5,550, 4,200 bales, Hasilpur at Rs5,600 to Rs5,675, 200 bales, Haroonabad at Rs5,650, 800 bales, Chichawatni at Rs5,700 to Rs5,750, 400 bales, Gaggomandi at Rs5,700, 400 bales, Burewala at Rs5,700, 400 bales, Khanewal at Rs5,750, 800 bales, Faqirwali at Rs5,750, 1,200 bales, Mianwali at Rs5,800 and 3,000 bales, Rajanpur at Rs5,800.