Buying sustained as prices served interest of manufacturers

The buying sustained as prices served the interest of manufacturers, while ginners felt they were being duped by circumstance and should hold falling value of cotton. The spot rate was subjected to a couple of times.
WORLD SCENARIO:
The cotton futures were uneven owing to investors short covering support or otherwise. Commodities and falling gold and oil prices leading to players' disgust who wanted stable cotton trading during the last week. The December on the opening day rose by 0.78 cent to 50.22 cents a pound. The opening session was encouragement for short movement as investors' short covering and trade-buying rejecting continued decadence.
The day's firmness was seen no more than just a little careful bounce. The cotton fundamental was heavily impacted by crisis in 80 years, which was both in US and abroad. In short, they said fundamental has nothing to do with the trading but the consumer and their reaction to current credit crisis and more. On Tuesday the rise fizzled out as small investors mulled whether measures to overcome crisis will yield positively. The players showed upset thinking as every thing was influenced by a number of upsets making impossible to see a ray at the end of tunnel. However, analysts believed cotton will derive leads from performance of the crud and gains markets.
On Wednesday cotton futures were nearly 1-1/2 year low as investment fund sales hit by global impact so much so that brokers were openly betting on further losses. Falling equity and commodity markets heavily impacted cotton and it was just a matter following December fall, automatic sell-order will be dominant.
On Thursday the NY cotton futures rallied on late investor and merchant buying to end sharply higher as a recovery in the Dow and tightening supplies powered prices up. The benchmark December cotton contract settled up 2.03 cents or 4.3 percent at 49.57 cents per lb after dealing from 49.80 to a new lifetime low of 45.66 cents.
On Wednesday, the contract finished at 47.54 cents in the lowest close for cotton on the spot daily charts since the middle of May 2007. March rose 1.51 cents to end at 53.39 cents. Volume traded in the December contract stood at 12,901 lots.
LOCAL TRADING:
Cotton consumers pounced on the cotton on sales owing to favourable offers by the reluctant ginners who were lately worried they were losing. Unhappy though they decided to slash the spot rate by Rs 75 to Rs 3400 pressed by likely smooth supplies of phutti in Sindh and Punjab down at Rs 1600/1700 per 40 kg.
Spinners and millers good fortune, cotton exporters were away confident good production news will put ginners under stress to lower prices when they will return to market. However, the ginners, who were slightly divided among themselves, were determined to further cut on hold. At psychological price level, the spinners and millers swept available cotton totalling about 22000 bales.
The next session - ie Tuesday saw ginners resolve to resist further decline hence pushed spot rate higher by Rs 50 to RS 3450 per 40 kg. The exporters of cotton were still on the sideline but repenting for missing offers on Monday. The cotton consumers - millers were however, not to rest content and nearly unmindful bid cared slight rise in ginners asking prices between Rs 3375 and Rs 3435 per maund. The exporters of cotton products have been at their best-gripped both by hope and expectations and grim disappointment owing to edge loss against the rivals who are not as much hit by high cost of doing business.
On Wednesday buying by the millers and spinners was sustained, as nearly 22000 bales were sold on the day. The exporters reluctantly were found bargaining at prices only 24 hours back they had rejected. The spot rate was inert as it stayed put at RS 345, phutti in Sindh ruled at Rs 1600 and Rs 1800, while in Punjab it was selling at RS 1600/1700 while rates in ready ruled at between Rs 3400/3475 per maund. The dollar value keeping high, exporter of cotton will buy cotton further in days to come.
On Thursday there was marginal change in lint prices. But it didn't affect buyers approach towards business. About 3400 bales changed hands, price range remained within Rd3300-3500. Official spot rate didn't move from Rs 3450. On Friday Official spot rate was down sharply on the cotton market on Friday despite the continued forward buying by the spinners and mills.
The official spot rate was lowered by Rs 75 to Rs 3375, they said. Phutti prices in Sindh were unchanged at Rs 1650-1700 and in Punjab prices were at the overnight level at Rs 1500-1650, (per 40 kg). In ready business also prices turned; over ranging between Rs 3100 and Rs 3400.Volume of business touched 23000 bales mark.
MASSIVE UNDER - INVOICING, OH!
Why authorities through last 60 years did not act despite knowing well trade deficit had been eating vitals of the country and its prosperity. The news that FBR has found that an importer allegedly involved in gross misdeclaration of Chinese goods at Customs dry port, Lahore, custom duty and other taxes were worked out to be Rs 1,179,978 as against originally paid Rs 333,988, thus deprived legitimate revenue to the extent of Rs 840,088. That the practice has continued often detected but wrong dowers allowed going Scot-free.
Thus keen watchers made use of the lapses on the part of authorities, sources close to trade and business said. The practice of under-invoicing and safe passage strengthen the belief the manufacture of agricultural implements, textile machinery, dyes and chemicals do not arise. The textile machinery has made a great difference in India and China where textile products have not as much reported about high cost of business as in this country.
Form "Thela" duster to fashion malls you can lay hands on any small stuffs of your need to any stuff that you dream to make your house look attractive and comfortable. They are few types of local manufacture, while above 90 percent are the foreign made. The foreign goods are either grace of open large scale smuggling or brought within this country with of course impunity through large-scale under-invoicing. Once authorities allow machinery or other goods seekers to import, nobody bothers whether imported goods are new and as per specification and desirable, or already scrapped and next year again foreign exchange will be sought for the same purpose.
Can anybody say with any certainty why one fourth or half sick, non functional or dead, sources questioned, adding authorities are keen to hold mal practices in check should act more energetically or there is no way out. Reports like the one mentioned will continue to leave bad taste in mouth and trade deficit will never come under arrest and economy draw will linger on!
MAN MADE MARKET SYSTEM, AFTER ALL:
Efforts to retrieve economy of the world powers, a humble bid, it may also prove to outstretch to soothe countries abounding people with hungry mouths. But ignoring despite warning how humiliating Vietnam War and indulging in yet more devastating war ventures had bag full of effects unfolding today.
Pakistan head of state, trade and finance ministers holding still regard for super powers had been approaching for accelerated access to markets for particularly its textile exports, for investment and FTA etc were sent back empty handed for a couple of reasons, one keeping this country within limits, which it was trying to inroad, and, sinking past economic and glory. Some low key administration figures whispered they had enough of regional pledges to burden themselves with more. Even today textile exports have been measuring their stretch how to match the edge Pakistan feel they don't enjoy any more.
How desperate mistake makers were who naturally lost potential export markets because the fear injected into basically doing no harm to anybody were punished and nearly destroyed. The mistake had taxed the makers affecting its ties and exports. They weighed the wrong done by attacks and used diplomacy to urge nations to upgrade values of currencies, which was repulsed blank point assuring the suggestion will be granted when appropriate times hinted so.
Then the alternative was applied by devaluing own the most longed after currency, which gave insight to people whose exports were at stake. The oil and food products sky rocketed and that with other weaknesses in the system acting in domino ways. The insight was constantly being imparted to leading world newspaper readers and duly watched by secretary Nobel price.
YES NATIONAL APPROACH:
Exports from all fields have never kept it under carpet that after the departure of creators of this country nothing was right and fair happening. Even today only slight change in thinking and fact has made some room but overall theme remains same. Newspaper pages will hear testimony how truth was trampled by those who at the time of wearing down filled half-hungry people with hope but then cast a look on news papers!
The only potential leaders and businessmen who convinced textile could take country to any height of progress and prosperity exploited to the hilt. But the exploitation did not go beyond building a multi store mills and importing some rotten or new mills. The cost of total investment often claimed was 15 percent, according to sources who have followed the upheavals from last so many years. The rest of the investment had to be acquired by poor salaried persons taxes deducted at the base, local or international, financial donors.
While all the regional rivals set up textile machinery plaits to cut it to desired drill and fashion as the taste of consumers changes in a twinkle of an eye, had their own dyes and chemicals units not only to serve their country's needs but even to export to needy countries including Pakistan.
This situation was never during 60 years tried to turn for better. The textile industries earned through sales of their products and exports and invested part of their earning/profit into development of infra-structure, though had backing and some financial help of their government. China and India are quoted here how much government helped. Billions of dollars worth subsidies were paid to satisfy the whims of who were filling banks abroad. Today government is constrained to drop subsidiaries. Who can answer who will suffer most?
TEXTILE EXPORTS IN NECK DEEP WATER:
Without awareness of what was in store for textile exports, exporters were holding responsible authorities of poor country for keeping themselves aloof from taking out of glut. This very old saying and grim fact that save for rainy days. The countries, which propound and practice, say they were in worst all imaginable throes.
The world renowned billionaire investor George Soros, came in limelight to particularly to even lay men in Asia when a decade back he was supposed to have created currency debacle in Asia, except Malaysian one, has predicted that financial crisis would mean the end of a US -led market system that has dominated the global economy with debt and deregulation since 1980s.
The poor countries and poor have waited centuries to enjoy a global market system awarding them equity and fair play, but they text contented with buying finished goods against their raw materials sold at throw away value. The Pakistan textile exporters have been turning raw cotton bought at higher ruling rate but the global markets probably have no prospect for their exportable surpluses.
The world leaders today are mulling how to ensure food to hand to mouth destitute with no room for smooth and hassle free exports. Under such grim situation the global trading system is being talked by some to contain some hope for some people, but the majority is keeping fairly away form WTO was likely to offer solution of centuries old desire.
Sources worried on a account of unprecedented hike of daily use directly affecting Jhuggi dwellers are calling on all: who has brought this day in this highly potential rich country. Indeed! George Soros should not be asked to answer.