KARACHI, Dec 4: Cotton prices remained steady on Tuesday as millers stayed on the sidelines because they hesitated to buy local crop at above Rs6,000.

The Karachi Cotton Association (KCA) kept its official spot price unchanged at Rs5,900 per maund after revising the previous day.

However, activity fell as only 2,800 bales of cotton were exchanged in Sindh at Rs5,650 to Rs6,050 and in Punjab only 9,200 bales of cotton were exchanged at Rs5,900 to Rs6,100.

This compared with 5,400 bales of cotton exchanged in Sindh from Rs5,250 to Rs6,050 on Monday and in Punjab, 17,040 bales of cotton were exchanged at Rs5,800 to Rs6,100.

Brokers said that millers were cautious about buying above Rs6,000 as they would prefer import crop of a finer quality at the same price.

According to Pakistan Cotton Ginners Association data, cotton production stood slightly over 9.6 million bales and is expected to go as high as 14 million bales of cotton.

In Punjab, production totalled about 6.7 million bales, whereas in Sindh it was around 3 million bales. Sanghar has the highest output, which is over 1.2 million bales.

Cotton production target is 15 million bales, but because of floods, rains and damage to the crops, output is expected at 14 million bales but millers have signed contracts to import roughly 1.6 million bales.

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

SINDH TYPE: 1,000 bales, Shadadpur at Rs5,650, 800 bales, Khairpur at Rs6,000 to rs6,050 and 1,000 bales, Upper Sindh at Rs6,050.

PUNJAB VARIETY: 200 bales, Bakkhar at Rs5,900, 800 bales, Layyah at Rs5,900 to Rs6,100, 400 bales, Alipur at Rs5,950, 800 bales, Taunsa Sharif at Rs5,950 to Rs6,025, 400 bales, Haroonabad at Rs5,975, 800 bales, Khichiwala at Rs6,000, 600 bales, Hasilpur at Rs6,000 to Rs6,050, 400 bales, Mianchano at Rs6,000, 200 bales, Bahawalpur at Rs6,000, 400 bales, Basti Malook at Rs6,000, 400 bales, Khanpur at Rs6,000, 600 bales, Faqirwala at Rs6,000, 400 bales, Fort Abbas at Rs6,000, 400 bales, Jalalpur at Rs6,000, 2,000 bales, Rahim Yar Khan at Rs6,050 to Rs6,100, 400 bales, Shadan Lund at Rs6,075 and 400 bales, Rajan Pur at Rs6,075.