The local conditions were adequately supported by world surging rates which constrained spinners either to sideline or book import orders, relevant sources said.
However both buyers and sellers were wary as to what was going to happen on world and local cotton fronts.
The prices jumped in quick succession to gain Rs 200 to Rs 3325 without ST and upcountry expenses.
WORLD SCENARIO: Sharp rise sustained on the NYCE during truncated trading on account of New Year's Day on aggressive fund buying.
The long holidays earlier prompted rush buying when trading resumed on Monday. The first session after long holidays saw cotton futures settling at a six-week high on speculative fund buying that powered the market away from its recent trading range.
Analysts said the rally erupted after pent-up buying built up during the long holidays.
Market remaining shut lost Thursday and Friday for Christmas. But they also forecast that advances might peter out ahead of another long holiday - Thursday and Friday for New Year's holiday.
On Tuesday, futures settled mixed with nearby months given a boost by a steady speculative fund buying as market players got ready for the long New year holiday break.
The cotton futures and options market was to remain shut for New Year on Thursday and Friday with Saturday and Sunday being weekly holidays.
Traders hoped small lot buying and book squaring may be the order of the day, ahead of another long holiday week-end.
The last day's trading on Wednesday finished firmer on speculative buying with contracts seen moving higher going into next year.
The prospect of further buying by China on improved technical outlook seems poised to nudge the market higher going into 2004, traders said.
They said players will be considering annual Beltwide Cotton Conference in Texas, where a speech was likely to be delivered on supply and demand outlook for the year 2004-05.
LOCAL TRADING: The spinners found themselves during the outgoing week in a tight corner owing to shortfall in cotton production, gradual evaporation of quality lots from the market and a rising trend in the international markets.
The natural outcome for spinners was to continue with buying support to the local available quality lots.
Whenever cotton futures got a push upward, local lint price was also lifted during the week until Saturday, by Rs 200 to Rs 3325 without ST and upcountry expenses. Buying sustained throughout the week.
The first day's session saw cautious buying by spinners who were thwarted by rising prices.
The day opened unchanged at Rs 3125. Over 5000 bales only were done. The ginners, who were in the grip of short crop, could not hold back when futures in New York showed rising tendency.
Combined deals struck totalled over 8000 bales at prices ranging between Rs 3200 and Rs 3300.
The third session maintained rising posture as sources saw only 100,000 quality lots left with the ginners, while needs remain at higher level.
Nearly 4000 bales changed hand. The day saw a further raise by Rs 25. Thursday offered another opportunity to the ginners to pull prices higher, but being certain deals would shrink, restrained them for the day.
Modest business transpired in the range of Rs 3200 and Rs 3300 (all lots from Punjab).
On Friday, ginners holding themselves back, gave way to temptation, and raised price by Rs 50 to Rs 3275.
Exact number of deals are difficult to state because deals struck in the day are transmitted to brokers late in the evening.
Saturday: Market reported no fresh deals on Saturday as spot rate jumped by Rs 50 to Rs 3325. The spinners are planning afresh to revisit market and start buying.
COTTON 2003: Cotton business, according to people close to it, said with one voice that it was certainly one of the best years.
Cotton consultant Naseem Usman said that the price which was quoted in the beginning of the season, July onwards, at Rs 2200 reached as high as Rs 3400 recently -- a feat rarely seen.
The fluctuation was quite frequent, still the prices touching a high did not look back violently.
The reason for the jump in prices has been quite a known fact. Although no size of cotton production has been determined, still a wide gap has been cause of worry among the buyers.
The price line has always been a ground for nagging by the spinners. The exporters had been very irregular during the season.
Strangely enough, exporters had taken the earlier price as high and kept watching its movement from the sideline.
However, realising that they are about to miss the bus, they started buying above Rs 2400. As a matter of fact the players and people close to trade had seen crop very encouraging.
The spinners also had waited quite long to see prices come to their export parity.
But the ginners never for a moment agreed with estimates of the cotton crop committee or independent ones, who gave out production figures after an 'on the spot' tour of Sindh and Punjab.
Today three distinct sizes are afloat, and each size is being held firmly by the pro-ponders.
The official cotton committee began with over 11 million bales, but the ginners, who claim to be well versed by dint of their visits to spots and contact with the growers, put it first at nine million bales at the most.
The result was, official cotton committee downsized the figure to 10 million bales.
Ginners reject this figure also as it hurts. They have now put the size around 8.6 million bales. The independent forecast has put the size at 9 to 9.2 million bales.
However, the year was, by and large, good. In the event, the prices have so far gained Rs 1000, and if ginners stick to, and the figures prove true, most likely prices will go up.
Meanwhile, a recent EPB report on export has forecast record foreign exchange earning at $12 billion, and has said textile is likely to contribute over 67 percent.
While the anti-dumping duty EU is likely to impose, will go to hurt the prospect, the exporters have meanwhile said that they are not deterred by any threat, saying they are upbeat for good orders from Heimtextil being held in Germany from 14th to 17th January 2004.
TAIL PIECE: Ginners, according to them, are once again grappling with a problem that could be solved without hassle.
They have reported that lately they are facing snatching of their trailers carrying cotton.
What they have complained is that authorities are not taking interest in recovering the goods.
They said their attempt to register a case was foiled. They also recalled here that when a huge fire engulfed a factory gutting the cotton even fire brigade services reached late.
The report has been quoted and one only hopes that ginners, or for that matter, anybody in Pakistan needs a response and service is made available too.
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