"The market will slowly attract participants and right now everybody is sitting on the fence adopting a wait and watch policy" according to the officials of East India Cotton Association (EICA).

The cotton futures market which resumed on a bullish note on Saturday - December 5, 1998 opened with a bearish tone on Monday - December 7, 1998. However, the sentiment improved over the week with higher closing and settlement prices each subsequent day. ICC February 1999 settlement price modestly increased from Rs 4810 per quintal on Monday to Rs 4863 per quintal on Friday. The trading took place only for ICC February 1998. It was only on Friday - December11, 1998 - that the ICC April 1999 was traded for the first time.

On Tuesday and Wednesday, price for ICC February 1999 remained constant at Rs 4827 per quintal and Rs 4835 per quintal respectively. On all other days, prices moved in a very narrow range. Only about 10-15 members conducted business and that too on their own account. These clearing and trading members (CTMs) are yet to register their clients whose names are put forth for the board's approval, informs EICA officials.

With a low levels of operations, the volumes too were less than 1000 bales per day and the value of these transactions ranged between Rs 9 lakh to Rs 81 lakh.

"Members are cautious and are not ready to take positions and hence a narrow movement in prices" says Ramakant Chokhani, executive, ICC futures trading.

Most of these participating traders are the one who were instrumental in restarting the futures trading and hence consider it a moral responsibility to participate in this market. They wonder how would a small group of10-12 members can sustain the market for long. So far, all the trades have been on the members' account and none on the clients' account.

The spot price indicated by the EICA's pricing committee remained steady at Rs 4949 per quintal till Thursday. It was lower at Rs 4921 per quintal on Friday.