KARACHI, Oct 22: Cotton prices remained steady on Monday due to adequate phutti arrivals as ginners were eager to sell their stock ahead of Eidul Azha , brokers said.

The Karachi Cotton Association kept its official spot rate unchanged at Rs5,650 per maund but prices slightly fell in Sindh in the ready market, but activity was dull in Punjab.

About 8,000 bales of cotton were exchanged in Sindh at Rs5,550 to Rs5,750, while just 4,800 bales in Punjab at Rs5,500 to Rs5,700. This compared with 4,400 bales exchanged in Sindh at Rs5,550 to Rs5,800 on Saturday and 14,800 bales in Punjab at Rs5,475 to Rs5,800.

Brokers said that prices may increase next week due to slight improvement in export to US and European markets.

US cotton futures closed lower on profit taking after rallying last week to five-month highs when trade and speculative shorts covered positions amid fears about a US supply shortage.

The following transactions were recorded on the ready market on Monday:

SINDH TYPE: 600 bales, Shahdadpur at Rs5,550 to Rs5,600, 600 bales, Tando Adam at Rs5,575 to Rs5,600, 800 bales, Mirpurkhas at Rs5,550 to Rs5,600, 1,000 bales, Nawabshah at Rs5,575 to Rs5,600, 3,500 bales, Khairpur at Rs5,750 and 1,500 bales, Uppersindh at Rs5,750.

PUNJAB VARIETY: 400 bales, Ahmedpur at Rs5,500, 400 bales, Bahawalnagar at Rs5,600, 1,000 bales, Bahawalpur at Rs5,500 to Rs5,700, 600 bales, Burewala at Rs5,500 to Rs5,650, 400 bales, Faqirwali at Rs5,650, 800 bales, Haroonabad at Rs5,650 to Rs5,750, 200 bales, Layyah at Rs5,575, 200 bales, Mianchano at Rs5,650, 400 bales, Shujabad at Rs5,650 and 400 bales, Mianwali at Rs5,700.