Both the sellers and buyers were tight as both had diametrically opposed perception about their interest, still by and large good selling and buying could be marked during the week ended on March 10, 2007. The spot rate was raised by Rs 50 to Rs 2,575 on Saturday.
WORLD SCENARIO:
Futures opened weak on speculative and fund sales but reversed soon after, as prices were pushed higher by modest buying. China news is keeping market operators looking for factors that could infuse lift into trading. Spring planting report is still weeks away. May contract closed 0.80 cent down at 33.05 cents.
On Monday modest speculative sales led to contracts end lower. The market noted that some difference could be marked after release of monthly supply/demand report from USDA. Meanwhile players eyes are fixed on some signal from China at the end of Lunar New Year celebrations. Sowing is expected down during 2007 owing to robust advance in corn values.
The speculative and trade buying gave visible push to the futures. Brokers predicted the prices might drift before the release of govt report around March end.
A technical factor led to gains in futures on Wednesday on speculative buying. The move was expected to consolidate market before weekly export sales report. The market operators were earnest about the monthly supply and demand report by USDA.
The traders reported what caused the cotton to bolster that they pointed out was owing to strength in another commodities elsewhere, more particularly surge in Chicago gram prices. Meanwhile major market players foresaw plantings to go down 15.276 million acres.
The long wait has not ended as a result the futures ended mixed on Thursday. The small speculators dominated the proceedings while most others refreshed their wait for cotton crop report. Analysts said that the most traders were content to sit back until release of govt report on supply/demand which would have been in hand with the players by now. The export sales report failed to derive any inspiration and wait began for reports still to come. However, report showed total cotton US sales at 289,600 RBs (500 Lbs) higher than last week.
Shipments were recorded at 249,000 RBs again up compared with past week. The last session witnessed firmer condition owing to speculative buying.
The major players did not take seriously because all changes were minor and largely said to be expected. The May contract rose 0.01 cent to 54.49 cents a pound.
LOCAL TRADING:
Both sellers and buyers seem tight in their perception to move only when favourable prices are at hand. The PCGA statement wait has again been there to plan selling and buying. In the meantime, ginners have been anxious about imports that spinners have been expecting. The spot rate was not changed on whims rather some suitable occasion is being awaited. The rate in ready was ruling between Rs 2300 and Rs 2650. On Monday spinners lifted some 6000 bales. The pace they are not looking for but slowly and gradually they are laying hands where price or quality stand by them.
The textile sector is worried about delay govt is making in deciding about the package. The govt is planning exports in its own way and certainly it wants forex earned over $18 billion. The authorities are hopeful some ways are being tried to sustain all round growth.
Buying pace improved at lint as sellers have changed their attitude and turned flexible. The buyers lifted 10,000 bales and near that volume as sellers were also flexible. They have often been bigger losers by holding back ready stocks and pile up. As expected PCGA statement on arrival figure will push sales that did not materialise. The trading on third day was subjected to short crop idea.
In ready prices gradually bulged. The lowest asking prices were seen at Rs 2500 while the maximum was quoted at Rs 2600. However, buyers were living on idea favourable price will be demanded while quality too would be of international standard.
On Thursday market turned insipid and operators reported no activity. The reason pending has been both seller and buyers holding back hoping a time will come when condition will favour them.
The ginners however, are keeping spot rate unchanged at Rs 2525, the ginners are said to be following prices in the world besides taking advantage of local rise and fall in production
On Friday a few deal were market as spinners are trying to cover their immediate need.
Moreover, it appears Pakistan importers may have to do second thinking as Indian exporters have raised cotton prices by Rs 200. The prices already had shown higher level from existing levels. The spot rate stayed unchanged at Rs 2525.
On Saturday situation changed as in late Friday trading prices turn higher and a deal was reported at Rs 25700. This development motivated the Karachi Cotton Association to raise the official. Spot rate to Rs 2575.
THE PRICES AND VOLUME IN READY BUSINESS TURNED HIGHER:
PREMIUM ON COTTON 2004-05 AWAITED:
Whether the struggle for recovering the premium of cotton that TCP had purchased in 2004-05 has any meaning or substance is better known to those supplied and those who bought.
But silence on the part of buyers and crying hoarse of the sellers makes the on lookers from distance surprised and guessing. As far as knowledge goes some weeks back similar voice was raised and to day the voice seems to have gone unhealed.
A former chairman has expressed regret for so much inordinate delay in payment. While the TCP seems quiet and unconcerned over the claims that premium against the clean cotton sold to the TCP supposed to exports.
In a earlier story it was claimed that ex-chief of the corporation now joined the textile Ministry had bought and some payment was made. But the differences had been over quality. The sellers claimed contamination free cotton was paid but the TCP disagreed and that problem lingered on.
The ginners former president claims that several sessions had been held by the two concerned on the issue but payments which are in thousands were held up.
The ex-PCGA said that at one level of discussion the TCP authorities asked aggrieved ginners to file claim with an Rs 10,000 fee, which the ginners did. But their honour went astray and nothing is heard from the TCP not even the fact whether the fee realised is going to be paid or.
The apparently harassed ginners have been approaching commerce ministry.
But lay man in the street cannot do any thing unless some words from the TCP and commerce ministry come and in clear term.
As the reports go both parties have some nagging but the ginners could be understood but the TCP's action on asking claim file after payment of Rs 10,000 and final decision taking so much delay is incomprehensible.
DEVELOPING COUNTRIES TURN:
Whatever messages are being mirrored through wall considered statements of leaders from rich countries that it was now poor countries turn to satisfy the well fed. The usually, probably trick of the trade, applied that categorise section to place the work and poor as much distant as possible. This time countries without any criteria have been dividend three/four types so that the most effective and powerful voice loses the desired hammering.
The most effective voice has been dubbed as the lowest develop countries. They have been awarded duty free access and can't stand by others like Pakistan. The decades old and most well known had already been existing ie the developed and secondly developing countries. The total now stands at three and all they have interest different from one another.
And the vote WTO needs to be effective and acceptable to give it effect of globalisation cannot just come in fact this categorisation has dimmed the light of globalisation and wrangling continues among those who otherwise could just give a thud and smiles would has sprinkled on the faces who have seen on some faces but not on their own.
There is yet another kind that is emerging fast, a category India and Brazil, are being taken and they have been wrongly taken for granted by worthy of carrying real poor men's mandate to thrash out best possible solution so that real ones no more need to bother about education of their kins and stay one generation after another in debt and decide to be better dead through suicide, rather live in pangs and perpetual fear.
If at all WTO is to get a winning vote the real owner of the raw materials should be separated through votes or poll so that they are not just picked up by those who have through centuries only loved to pounce on the best and varieties of dishes rather then ever knowing what is ploughing, rains sowing and harvesting and marketing. Those who invent things like League of Nation, United Nation Organisation and decide to role freedom of people. In the name of giving freedom are in 100 percent cases wrong foot to decide fate by repeatedly telling nobody that talks are being billed as once in a generation chance to boost the global economy and help lift millions out of poverty. Such sentences are invented by those who have only heard words like hunger and suicide . Let us hope the men from emerging developing countries have the feeling to apply truth and justice.
WTO BILATERAL TALKS:
The latest bilateral negotiation between Kamal Nath. Indian Trade Minister was declared as successful by spokesman for EU Trade Minister Peter Power sounds optimistic. The success story was kept back was pretty disappointing. Now those following the latest talks in London will have to depend on their knowledge and to some extent contemplation.
It however, seems the Indian representative may have surrendered what so far developing countries had been stacking to for better bargain. But the spokesman did not touch anything such to let it be like riddle. The globalisation has such vast field that speculation can cause raise of eyebrow in some.
Secrets are grudgingly kept secret which gives a taste that one enjoys to hearts content. Can one not speculate the developing country's representative might have deduced things of its interest. The tug of war is being witnessed ever since 2001 or 2002 when a murmur is continuing as favourite game of the US and EU or countries with stable economy. They are on record of offering share in their own view too much and were expecting matching offers from countries who have nothing to offer except parting with some stuff that they themselves need most.
The wait despite abhorring had to be borne as Brazil was probably stuck up in Geneva and another rich partner was expected to hold bilateral talks. According to report talks had to be bilateral making it apparent that the interlocutors were supposed to hold back the result, whether favourable or otherwise. The time factor is so short that will have to be not long. The result will be above board within three months to be incorporated into the final of the WTO deal. The problem is that America wants to be leader but at all costs.
Bush knows well that his mandate won't long last but the congressional election came in between. Thus the president hands were tight. Anything untoward could have hit Republican contestors.
But the same fate, Bush was trying to avoid confronted him. Now if he is stuck with the offer he has already made but probably none of the 150 WTO members had liked and unless Bush had advanced his offer to the satisfaction of all, more particularly European Union. It is the constraint that bilateral talks were chosen so that poor country's representatives could be influenced, dragged even pressurised!
OPTIMISTIC WERE THEY:
Some days back two statement of Pascal Lamy harassed WTO chief, were far more optimistic as solution seemed to have been cooking and nice smell was coming out. Now as the key minister tighten belts to talk in London at the weekend, the diplomats warned to be that optimistic to expect a break through anytime soon.
The week end meeting in London participated by US trade representative EU Trade Commissioner, Brazil's Foreign Minister and Indian Trade Minister will hold bilateral talks, the big ones head been apparently showing that they are proactive and earnest to see outcome. But thought they were themselves to come with offers, that they are assuring will bring smiles on the faces of poor missing since the world came into existence. As the two rich countries men meet two leaders of the poor countries probably convince them that come on you come with winning paint - offer little more.
But in the tug of war like this anything can happen for which a wait is sought several meetings are in the air. Or what is that somebody had whispered some move was on but they would not give what that was. In the meantime poor people will be pestered for more come on mare steps forward giving ground to hold back by the rich what they had in the clinched fist. Bush has a couple of months in hand to clinch the deal.
He might be aware the govt that will take over from him may not see WTO or globalisation through and thus a credit he would be losing. Perhaps he had behind some satisfaction of smaller or regional deals that will go to yield gains provided both countries showed continued interest. What he has done with India is likely to embarrass countries friendly to that country when the US saw India with a degree of mistrust.
The recent meetings however should be awaited as one can, may be wrongly perceive the two progressing fast developing countries, and assigned the job to represent the poor who will be the huge gainers if WTO goes through, act strictly according to "Whims" of the poor.
Unfortunately the countries, neither fully rich nor the poor could be fair to their people. The rich countries are out and out to grab what is possible from the agricultural countries so that they can save for their own farmers the share US and EU and other had to part with.
India is said to have had 150 suicide or deaths without food as late as 2006. So called developing countries have their leaders in a habit to behave like Maharajas"
TAIL PIECE:
Mostly youngsters were picked up from Industrial area periphery or the hungry one used to knock at the doors, were welcome for handling garment manufacturing or like institutions. The advertisement by Ministry of Textile Industry said that Textile Skills Development Board (Textile Commissioner Organisation) in association with PRGME and Pakistan Hosiery Manufacturer Association has started the sketching machine operators training (SMOT) scheme in various worker and knitwear garment units seems good days for the exports and skilled workers are knocking Pak door of prosperity. How much and how entire management works that is un material as, perhaps WTO had not hit textile sector hard nothing was likely to open govt eyes. The sectors are practically shy, according to the knowledgeable circles, govt should have conceived to find ways and means to raise exports.
The circles were recalling years of exports total earning atsix6 to seven or a maximum of eight billion dollars. Had anybody imagined either among the authorities or export sectors magnates their country would have been at the level of South Korea, Malaysia, Singapore, Thailand, India and China.
Pakistan still needs to begin with scratch to reap the best of harvest. All land is virgin and all sectors are doing exports with mostly imported raw material!
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