KARACHI, Feb 7: Cotton prices in the ready market fell on Thursday after reaching as high as Rs6,500 the previous day and activity also decreased as cautious millers stayed on the sidelines.

The Karachi Cotton Association kept its official spot rate unchanged at Rs6,100 per maund. Deals for 6,800 bales were finalised at Rs6,000 to Rs6,300 in Sindh and 6,250 bales at Rs5,800 to Rs6,000 in Punjab.

There was some panic in the market after reports that the local crop size may not even touch 13 million bales this season.

US cotton futures rose in late trading on Wednesday, reversing earlier losses as mills jumped in to buy fibre after prices hit a perceived floor. Stocks have increased every session since Dec. 20 as higher spot prices have lured material to the board and as northern hemisphere farmers wrapped up their 2012/13 harvest.

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

SINDH TYPE: 4,00 bales, Shahdadpur at Rs6,000, 2,000 bales, Khairpur at Rs6,200 to Rs6,300 and 4,400 bales, Upper Sindh at Rs6,350.

PUNJAB VAREITY: 1,200 bales, Arif Wala at Rs5,800 to Rs5,950, 500 bales, Gaggo Mandi at Rs5,900, 2,000 bales, Muridwala at Rs5,900 to Rs6,000, 350 bales, Jhang at Rs5,925, 1,400 bales, Rahim Yar Khan at Rs5,950 to Rs6,050, 400 bales, Burewala at Rs6,00 and 400 bales, Qaboola at Rs6,000.