KARACHI, Jan 7: Cotton prices rose in the ready market on Monday and amid lower phutti arrivals, and brokers speculated that growers may be holding back on their crops in order to fetch higher prices.

The Karachi Cotton Association, however, kept its official spot rate unchanged at Rs6,000 per maund. In Sindh, only 2,000 bales of cotton were exchanged at Rs6,100 and in Punjab, 5,400 bales of cotton were exchanged at Rs5,925 to Rs6,100.

Most deals on Monday were transacted at or above Rs6,000, compared with Saturday’s deals which were mostly under Rs6,000 in the ready market.

Cotton fell on Friday on technical selling as the market broke below a short-term trendline after US data showed a 36 per cent drop in exports and Beijing confirmed the world's largest textile market will sell some of its massive reserves of fibers.

Dealers linked selling to the market falling below a two-month trendline higher, but the initial reaction to news that China, the world's biggest consumer and producer of fibers, would sell some of its estimated 9 million tons strategic reserve, was bearish.

The news struck at the heart of many US merchants' fears about how long the Chinese government's buying spree could last.

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

SINDH TYPE: 1,000 bales, Khairpur at R6,100 and 1,000 bales, Upper Sindh (BCI) at Rs6,100.

PUNJAB VARIETY: 1,600 bales, Layyah at Rs5,925, 200 bales, Fort Abbas at Rs5,925, 600 bales, Burewala at Rs5,925 to Rs6,000, 800 bales, Burewala (credit) at Rs6,000, 800 bales, Rajanpur at Rs6,100, 200 bales, Mianwali at Rs6,100, 200 bales, Ghazi Ghat at Rs6,085 and 1,000 bales, Rahim Yar Khan at Rs6,100.