KARACHI, Feb 27: Cotton prices ended steady on Wednesday but remained on the higher side as millers anticipated that total cotton production of the country may decline further and also because there is a shortage of good variety crop, brokers said.

The Karachi Cotton Association kept its official spot rate unchanged at Rs6,400 and in Sindh, only 200 bales of cotton were exchanged at Rs6,500. However, activity rose in Punjab as 7,000 bales of cotton were exchanged at Rs4,800 to Rs6,900.

Some analysts said that higher quality of cotton was not available in the country as it had been exported to India and China.

New York cotton inched up as some mills spotted an opportunity to buy when prices declined to a near two-week low earlier in the day amid profit-taking.

Cotton prices have fallen back more than 4 per cent since climbing to nine-month highs last week.

But the recent jump in prices had sparked concern demand would decline.

Cotton prices posted yearly losses in 2011 and 2012 as lower-priced and manmade alternatives eroded demand for the natural fiber and global inventories grew.

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

SINDH TYPE: 200 bales, Ghotki at Rs6,500.

PUNJAB VAREITY: 800 bales, Mian Chano at Rs4,800 (exporter), 800 bales, Vehari at Rs6,100, 400 bales, Chichawatni at Rs4,800 (exporter), 400 bales, Burewala at Rs6,200, 400 bales, Khichi wala at Rs6,225, 400 bales, Lodhran at Rs6,400, Ahmed Pur at Rs6,500, 400 bales, Yazman Mandi at Rs6,500, 2,000 bales, Bahawalpur (conditional) at Rs6,600, 400 bales, Rajan Pur (conditional) at Rs6,800 and 600 bales, Ghazi Ghat (conditional) at Rs6,900.