KARACHI: Cotton prices touched a seasonal high on Monday on the back of rising demand. However, activity could not expand as ginners preferred to hold their stocks.

There was strong demand for quahty cotton but short supply disappointed manyspinners who were desperate to get hold of any quantity they could lay hand on.

Improved off-take of cotton yarn induced sentiment, brokers said.

Higher cotton prices in world markets, particularly India and the United States, made spinners look to the domestic market to meet their seasonal demand, brokers said.Meanwhile, reports coming from India indicated that phutti (seed cotton) flow has increased and on an average around 182,000 bales started reaching ginneries per day.

The Karachi Cotton Association`s spot rates were steady at weekend level. The following major deals were reported on theready counter: 4,000 bales from Dharki (done at Rs7,000), 1,200 bales Shahdadpur (Rs5,700 to Rs5,900), 900 bales Sanghar (Rs5,600), 400 bales Dahranwala (Rs6,700), 600 bales Mian Channu (Rs7,000), 800 bales Marrot (Rs6,775) and 400 bales Fort Abbas (Rs6,700).