The cotton sellers' excuses to make most of the remaining few lakh bales in stock, did not materialise owing to China with big list of shopping still to be seen on market venues, market sources said.
Sluggishness resulted in price adjustments frequently until Friday - on which day it was Rs 3175 without 15 percent ST and Rs 50 upcountry expenses.
WORLD SCENARIO: Last day's boost to cotton futures in NYCE trading failed to push futures enough to take it to the positive column as China and India with big shopping list are still to appear on the trading venues and presidents Day lengthened the weekend to three days.
Trading on Monday futures ended lower on option-related sales, as the trade waited for the release of USDA supply/demand report soon.
The options-related selling is believed tied to options expiration in the March contract.
Market players were also rolling positions out of the post March contract. The second day's trading extended losses and closed at 11-week low on speculative fund sales which touched off automatic sell - orders in a technical breakdown which could cause further losses.
Analysts did not see any kind of support from USDA supply and demand report. World cotton production rose to 92.65 million, consumption also edged up to 97.24 million and ending stocks went up to 32.49 million.
On the third day mixed pattern was marked in futures as speculative sales were offset by trade buying in hectic see-saw dealings, with most operators saying they were uncertain about the markets next move.
Dealers said the nearby months may track lower to see if the trade buying turns more aggressors and books their orders.
On Thursday futures turned sharply up as jump in US cotton sales ignited a rally fuelled by robust trade buying.
The last day of the week saw futures closing down in quiet business as most market players stayed away on the sidelines ahead of the long holiday weekend.
The USDA said net upland cotton sales hit 703,100 (500 lb) RBs exceeding trade expectations for 350,000 to 600,000 RBs.
The US shipments hit 348,400 RBs, a level which dealers said would enable US to hit largest of 13.2 million (480 lb) bales in exports for 2003-04.
LOCAL TRADING: Losing holidays on various counts including Eid and K-Day had engineered expectations that post Eid holidays would draw buyers to throng market but hopes did not come true.
However, the gainers received the spinners' message well and slashed official rate by Rs 25 to Rs 3225 without ST and upcountry expenses.
But gainers were a little vexed at market remaining deserted due to world failure to show the direction.
The first day's trading was as usual drowned in greetings. The second day was as dry and high and no deal was reported.
The ginners were receiving buyers message loud and clear and again responded with a cut and again responded with a cut in official rate bringing it to Rs 3200.
Prices ranged between Rs 2700 and Rs 3400. The ginners gesture did not appeal to the buyers and brokers serenely reported nil going.
However, you can mingle up with this situation with activity raising voices to start hedge trading.
The new point was that Aptma was stated to have put its weight on "yes" side. On Thursday only deal was reported in Sindh cotton.
The market sources however, were quite enthusiastic to note that European Union had imposed dumping duty on bed-linen exports and withdrawn GSP facility for garments exports from Pakistan.
Sources therefore, expressed disappointment saying the two events will go a long way in dampening exporters zeal.
Meanwhile, production of cotton could be later estimated at higher level. Something around 97 million bales or even higher.
The spinners will take thus news as positive development and would call it an opportunity they were waiting long.
Official estimated was scaled down which had negative effect on prices. On Friday some deals were reported.
But the official rate had already cut another Rs 25 to Rs 31.75. Over Rs 3000 bales changed hands.
The stepped up buying had exposed spinners response to ginners gesture. However, relaxation in prices was under pressures as world rates were showing down trend.
SATURDAY'S: Over 2000 bales changed hands between Rs 3050 and Rs 3300.
GSP WITHDRAWN: These were certainly bolt from the blues, particularly for the textile exporters who in expectation of exports getting a boost shortly made huge investments.
But the news about anti-dumping duty on the exports of bed linen. How much will it hit the quite ambitious exports earning at 12.1 billion dollar.
The exporters were still brooding over it when another news about withdrawal of GSP facility struck like lightning.
While in whispers exporters point at the authorities whose efforts were not matching to the determination of the EU.
About anti-dumping the related people in EU and Pakistan were quite alert and discussing for likely imposition.
Pakistan authorities had been moved for the purposes of rectifying the fault, if any. Besides the victims in the case EU importers are invited to take account of defaults on the part of exporters.
However, how far the story told by victims is credit worthy is that some EU people had come to investigate into the wrong. But according to victims EU members left Pakistan without looking into the entire pros and cons.
After sometime they were told anti-dumping, according Pakistani exporters arbitrarily, was imposed.
Lately exporters have been put under immense stress as they have been informed GSP facility has been taken back by EU authorities.
Pakistanis are primarily "sad" to lose the facility for which they had been making efforts to improve and win the EU importers.
Now they have been told very disturbing story to sever the facility. What they point out is hurting hard in presence of China and India with GSP facility in place. The efforts are on to get back the facility. One can only hope and pray the loss is saved!
HEDGE TRADING: The efforts have covered enough distance to start hedge trading during 2004-2005 season.
The efforts have long been on but who and will be done difference could never be done away with. At one stage, some years back the hope reached peak according to some people but they claimed "money" could not be made available.
For long the system, dropper in 1970s due to it being dubbed as un-Islamic has been fought for reintroduction.
The KCA has been in forefront. Some hitch was on the part of textile manufacturers and exporters. While differences among major players were not an impossibly but it being un-Islamic remained a major obstruction.
However, those who believed how useful hedge trading in cotton could be left no stone unturned to gather from religious men and scholars from allegedly Saudi Arabia and Al-Azhr University to clear it not in conflict with religion.
The reputed personalities cleared it saying if the deal is honestly concluded or the goods delivered as per agreement on a time and at the agreed price there is nothing wrong.
The latest efforts among KCA and PCGA have been claimed to be hectic. But knowledgeable circles see KCA, with all its experience and men, little chance. The interested quarters eagerly waiting the day curb trading starts.