KARACHI, Sept 10: Cotton prices remained unchanged on Monday in dull trade as the Karachi Cotton Association kept its spot rate flat at Rs5,650 per maund, due to the ongoing heavy rains.

According to brokers, around 5,600 bales of cotton were exchanged in the ready market at Rs5,550 to Rs5,725 in Sindh and Punjab.

There are also fears that the rains have badly hit the standing cotton crop and could possibly hurt the cotton production target of 15 million bales as the cotton belt in Sindh and Punjab has been hit.

But in international markets, New York cotton futures rose as fund interest remained strong on the back of a weaker dollar and prospects of further stimulus in the world's largest economy.

Cotton benefited from a drop in the US dollar and rallies in commodities like crude oil and gold after anemic monthly US jobs data spurred investor bets that the Federal Reserve will unveil a new round bond buybacks, know as quantitative easing, perhaps as early as next week.