KARACHI, Dec 18: The cotton market showed an improved trend on Thursday as prices of fine varieties edged modestly higher amid an actively traded session.

Unlike the overnight physical activity when there was a wide gap of over Rs200 between the selling prices of inferior fine lots, bulk of trading on Thursday was done at an average rate of Rs2,900 per maund as compared to Rs2,700.

Floor brokers said the recent rebound staged by the New York cotton futures on revival of foreign demand seems to have sent bullish signals around world trading centres and the local market could hardly be an exception.

New York cotton futures on Thursday was quoted higher by 1.82 and 1.62 cents per lb at 45.96 and 46.51 for both the ruling March and the forward May contracts, respectively.

Indications are that local prices would further rise in the weeks to come, partly on supply fears and partly to market talk of a short crop, they said.

However, they said the increase may not touch the early seasons peak level of Rs4,000 per maund and prices are expected to hover around the TCP procurement rate of Rs3,205 per 40 kgs or slightly above depending on the quality of lint in trade.

But some others said spinners and mills may not go beyond the current levels owing to problems on the textile export front and much would depend how the world textile markets behave in the new year.

There was, however, no change in the official spot rates, which stayed unchanged at

Rs2,850 per maund.

The following were some of the notable deals late on Thursday evening:

SINDH VARIETY: 800 bales, Shahdadpur at Rs2,750.

PUNJAB TYPE: 800 bales, Alipur at Rs2,875 to 2,900, 400 bales, Burewala, 200 bales, Fazilpur, at 2,850, 200 bales, each Faqirwali and Vehari at 2,835, 200 bales, Chichawatni at 2,700,600 bales, Hasilpur at 2,800 to 2,850,400 bales, each Bahawalpur and Sadiqabad, 600 bales, Alipur, 400 bales, Bahawalpur and 1,200 bales, Rahimyar Khan at Rs2,900.