Throughout this week, lint values remained steady and stable with few spikes or price reversals of any significant magnitude. generally speaking, daily reported turnover of cotton ranged between 25,000 to 30,000 bales.
Though Punjab has also joined ranks with Sindh to increase its lint supply, but real arrivals of the current crop (2008-2009) there must wait till another fortnight or even a few days later.
Continuing bad condition of the economy at large, rapidly rising costs of all goods and commodities, reported fear of considerable number of bad debts accumulated by several commercial banks and consequent falling spiral of the Pakistani rupee against the United States dollar have all added up to put the Pakistani economy into a tailspin. political uncertainties are accentuating the socioeconomic turmoil in the country.
The cotton economy together with its end products like yarns, fabrics and finished goods remain essentially pressurised. High price of power and its intermittent supply are creating more problems. Most mills are therefore buying their requirements only for the near future. Earlier, transport strike in Karachi had paralysed the movements of cotton and other cargo.
Regarding expected output of cotton this season, there is a little bit of more optimism than that which prevailed earlier in the season. Generally the consensus in the trade is that at least 12 million domestic size bales of cotton will be harvested this season, while other assessors put it at 12.5 million bales this season (2008-2009).
Mills are expected to consume less cotton than was projected earlier due to deteriorating business conditions. Thus the textile industry take up this year could range from 15 to 15.5 million local size bales which is more or less what the domestic industry consumed last season (2007-2008).
Generally speaking, the seedcotton (kapas/phutti) prices in Sindh reported on Thursday ranged from to Rs 1900 to Rs 1925 per 40 kgs, while in the Punjab they are said to have ranged anywhere from Rs 1800 to Rs 1900 per 40 kgs because of relatively lower grade of cotton coming at present from Punjab compared to the Sindh quality.
Likewise, the prices of lint in Sindh are presently marginally higher compared to those in the Punjab. Lint prices in Sindh therefore reportedly ranged from Rs 4150 to Rs 4175 per maund (37.32 kgs), while in the Punjab they are said to have extended anywhere from Rs 4050 to Rs 4125 per maund.
At one time the free market rupee reportedly touched Rs 77.80 per United States dollar but later it eased to Rs 77.20 against the greenback. Continual deterioration of the Pakistan rupee against the dollar are encouraging exports and therefore cotton exporters are also placing their inquiries in the market more or less regularly.
Ready sales of pressed cotton include 400 bales from Tando Adam in Sindh at Rs 4150 per maund and 200 bales each from Hala and Shahdadpur both sold at Rs 4175 per maund. Till the afternoon, 200 bales each from Bahawalnagar and Khanewal in Punjab both are said to have been sold at Rs 4100 per maund. Later in the evening, Karachi brokers said that cotton buying had somewhat abated.
A significant news for the Pakistani populace concerns the election of the president of the country on the 6th of September 2008. Asif Ali Zardari, the widower of the late charismatic leader Benazir Bhutto, remains the leading contender.
Post presidential election period will now determine the political direction of Pakistan as it is a major political event. It remains to be seen if the political unrest in the country will settle down after the election or enter a period of chaos. Presently, uncertainty continues to plague the socioeconomic sector of Pakistan.
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