KARACHI, Oct 20: Cotton prices fell on Saturday following a rise in phutti arrivals and volume increased drastically in Punjab as millers were actively buying the crop on lower prices, brokers said.

The Karachi Cotton Association revised down its official spot rates by Rs50 to Rs5,650 per maund. In Sindh, activity remained dull as only 4,400 bales of cotton were exchanged at Rs5,550 to Rs5,800. However in Punjab, there was brisk trading as 14,800 bales of cotton were exchanged at Rs5,475 to Rs5,800.

This compared with Friday’s trade of  6000 bales of cotton at Rs5,650 to Rs5,800 in Sindh and 9,920 bales of cotton were finalised at Rs5,550 to Rs5,900 in Punjab.

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

The following transactions were reported on the ready market on Saturday:

SINDH TYPE: 1,000 bales, Shahdadpur at Rs5,600, 800 bales, Tandoadam at Rs5,600, 1,000 bales, Sanghar at Rs5,550 to Rs5,600, 600 bales, Nawabshah at Rs5,600 and 1,000 bales, Khairpur at Rs5,800.

PUNJAB VARIETY: 2,000 bales, Bahawalpur at Rs5,475 to Rs5,650, 200 bales, Hasilpur at Rs5,475, 400 bales, Shahjewana at Rs5,500 to Rs5,800, 200 bales, Bakkhar at Rs5,500, 200 bales, Gaggomandi at Rs5,500, 1,600 bales, Burewala at Rs5,500 to Rs5,700, 200 bales, Multan at Rs5,500, 200 bales, Jalalpur at Rs5,500, 200 bales, Bahawalnagar at Rs5,600, 1,000 bales, Yazmanmandi at Rs5,600 to Rs5,650, 1,000 bales, Mianwali at Rs5,600 to Rs5,800, 1,000 bales, Lodhran at Rs5,650, 600 bales, Khanewal at Rs5,600 to Rs5,700, 200 bales, Darhanwala at Rs5,700, 200 bales, Khichiwali at Rs5,700, 200 bales, Faqirwali at Rs5,700, 600 bales, Rajanpur at Rs5,700, 3,000 bales, Fortabbas at Rs5,700 to Rs5,750, 1,000 bales, Vehari at Rs5,700, 200 bales, Qabola at Rs5,700, 200 bales, Jampur at Rs5,780 and 400 bales, Sadiaqabad at Rs5,800.