The spot rate for the same specification for the Indian Cotton Contract (ICC) was fixed at Rs 4,949 per quintal.

This implies bearish sentiment for the cotton prices in future. The maiden price discovery exercise by cotton traders resulted in more offerings in the futures market thereby discovering a lower future price at Rs 4,810 per quintal at the close.

The February 1999 delivery ICC traded today among the 11 members opened lower at Rs 4,801 per quintal compared to the close of Rs 4,925 per quintal witnessed on Saturday. Only eight units, (440 bales) were traded on Monday's two-and-a-half hour session against 18 units (770 bales) on Saturday during five minutes of trading. The total value of traded volume was placed at Rs 36 lakh as against Rs 81.18 lakh on Saturday.

The February 1999 delivery ICC moved in a very narrow band with high at Rs 4,811 perquintal and low at Rs 4,801 per quintal to close at Rs 4,808 per quintal. Today's settlement price for February 1999 ICC was pegged at Rs 4,810 per quintal compared to Saturday's close of Rs 4,824.

Trading in cotton futures commenced on Monday after a gap of 32 years, after five minutes of inaugural trading on Saturday. The East India Cotton Association (EICA) had received clearance in mid-October from the Forward Markets Commission to trade simultaneously in three cotton contracts-- December 1998 delivery, February 1999 delivery and April 1999 delivery. No deals were transacted for either December 1998 delivery nor in April 1999 delivery.

However, for the beginning the response appears quite lukewarm with only 10-11 members participating in the trading. EICA expects some 40-50 members to be registered as clearing house entiled members.