KARACHI, Aug 13: Cotton prices were flat on Monday and most millers were on the sidelines ahead of Independence Day and Eid holidays, but brokers expect activity to pick up next week.

Markets will remain closed on Tuesday for Independence Day and from Aug 20 to 22 on account of Eidul Fitr.

Karachi Cotton Association kept its spot rate at Rs5,955 per maund, unchanged from Saturday.

Brokers said cotton was traded between Rs5,800 to Rs5,850 in Sindh and Rs5,800 to Rs5,900 in Punjab.

New York cotton futures sank almost 4 percent, its largest daily fall in two months, after the US government raised its estimate for global cotton stockpiles to fresh record highs, reinforcing fears about a growing surplus and weakening demand.

The following transactions were recorded on the ready counter on Monday: 1,000 bales, Shahdadpur at Rs5,850, 800 bales, Sanghar at Rs5,850, 600 bales, Tandoadam at Rs5,850, 600 bales, Mirpurkhas at Rs5,850, 400 bales, Hyderabad at Rs5,850, and 400 bales, Kotri at Rs5,850.