KARACHI, Oct 8: Cotton prices rose on Monday following fresh demand from millers and prices in the ready market went as high as Rs5,600 in Sindh but brokers said ginners in Punjab held back seed cotton in anticipation of a further rise in prices.

The Karachi Cotton Association revised up its official spot rate by Rs50 to Rs5,400 per maund and most trades especially in Sindh were transacted above it. Around 11,600 bales were exchanged at Rs5,350 to Rs5,600 in Sindh and 6,000 bales at Rs5,350 to Rs5,500 in Punjab.

Brokers said cautious ginners hesitated from selling as they expect a rise in the prices due to improved quality and increased foreign buying.

The New York cotton prices eased on speculative selling as investors braced for a bumper US crop, although moves were exaggerated by extremely low volumes.

The following transactions were reported on the ready market on Monday.

SINDH TYPE: 3,000 bales, Shadadpur at Rs5,450, 1,000 bales, Sanghar at Rs5,400, 2,000 bales, Tandoadam at Rs5,450 to Rs5,500, 2,000 bales, Mirpurkhas at Rs5,350 to Rs5,400, 2,600 bales, Khairpur at Rs 5,600 and 1,000 bales, Upper Sindh at Rs5,600.

PUNJAB VARIETY: 600 bales, Bahawalpur at Rs5,400, 1,000 bales, Burewala at Rs5,400 to Rs5,500, 400 bales, Faqirwala at Rs5,500, 400 bales, Fortabbas at Rs5,475 to Rs5,500, 1,400 bales, Haroonabad at Rs5,500, 200 bales, Hasilpur at Rs5,375, 400 bales, Khanewal at Rs5,400 to Rs5,450, 200 bales, Khanpur at Rs5,400, 200 bales, Mianwalu at Rs5,500, 400 bales, Multan at Rs5,400, 200 bales, Yazman at Rs5,400, 400 bales, Vehari at Rs5,350 to rs5,400 and 200 bales, Sahiwal at Rs5,400.