KCA official spot rate fluctuated both ways, lint prices settle above Rs 3,000

Smooth phutti supply and fear of the Trading Corporation of Pakistan (TCP) intervention effected heavy slashing in the rates during the week ended on November, 1 2008, leading to restricted buying. The TCP intervention report cast favourable turn, which boosted prices on Wednesday. The spot rate fluctuated and finally settled at Rs 3125.
WORLD SCENARIO:
The cotton futures fluctuated both sides of the counter, but down turn dominated. US cotton continued to hinge on the signals from other commodities, like soybean etc, besides global prospect of recession. The cotton futures on Monday rose substantially despite other grains showing up. Some buying was noted by fund resisting further fall. December contract on Monday gained 0.87 cent to 47.10 and March was higher by 0.63 cent to 50.95 cents a pound.
On Tuesday futures about turned as investors were reported selling, impressed by other grains also slumping. The lint still appears to depend on reports borrowed from elsewhere, players said. They said cotton futures had managed some gains but it failed to sustain and gradually petered out. They were clear in saying they can put much stock in such price behaviour given the turmoil from continued fund liquidation in other commodities, equities and strength in dollar.
On Wednesday futures settled higher on investment fund buying observing rise in equity and commodity prices. Weekly export sales slightly down from previous week was expected as also the shipments. Some players however pulled courage to see December contract on way to settle higher shortly. Meanwhile analysts saw cotton market waiting for leads to see if the threat to global recession dents demand further down.
On Thursday futures dived down on sales owing to slackened fibre demand besides spectre of recession that is deepening with passage of time. Meanwhile, weekly export sales were registered down at 58,500 RBs from Sparkling 313,700 RBs. The orders from China were few leading to abnormal export sales. Analysts had eyes on NSDA sales and shipment reports. On Friday rates settled around 4-year low on low demand and biting global recession fear. The players expressed disappointment saying markets trending weak and retail demand poor, cotton futures were left defenceless in its down ward spiral. December fell 0.80 cent to 44.29 cents a pound.
LOCAL TRADING:
The spot rate was down Rs 100 at a stretch signalling the condition of cotton market trading where buying by spinners and exporters was said to have been restrained by reports the TCP was likely to intervene. It was not clear whether TCP wanted to stabilise prices by its intervention. However, spot rate was sharply lowered while cotton was sold at Rs 2400, much below ginner's expectation. The spot rate was at Rs 2900, while phutti prices ruled in Sindh and Punjab at Rs 1400 and Rs 1450. Total sale on the first day was nearly 14000 bales at prices between 2400 and Rs 3000.
On Tuesday buying was down to just 3000 to four thousand bale despite prices being low. The traders attributed this slump in buying to celebration by Hindus of Divali festival. However, slight betterment in phutti prices was seen on this day - in Sindh between Rs 1450 and Rs 1500 and in Punjab Rs 1350 and Rs 1500 per maund.
On Wednesday reports about TCP intervention had desired effect on lint prices, which had turned against the poorest of farmers who fortunately had still some in the field. The spot rate was boosted by Rs 50 to Rs 2950 phutti prices ruled in Sindh and Punjab at Rs 1450 and Rs 1500 per 40 Kgs. The total sales boosted to some 20000 dealer at slightly better prices caused by reports TCP was mulling to enter market to stabilise prices swinging against farmers - between Rs 2900 and Rs 3000. The growers were happy at scenario turn and were talking stocks of left over cotton with them. Ginners had turned cautious expecting further prices rise.
On Thursday in a surprise move spot rate was raised sharply higher by Rs 100 to Rs 3050 owing to government move to ensure entry of the TCP to stabilise prices. As a consequence the Phutti prices in Sindh and Punjab hiked by Rs 50 to Rs 100 to rule at Rs 1500/1600. The PCGA and cotton traders were upset and had arranged a meeting in Quetta result was awaited. The buying slightly shrank - to 12000 bales.
On Friday further rise was marked in spot rate by Rs 75 to Rs 3125. But buying was stepped up by the textile exporters, which touched 22000 mark. The traders are on all levels upsets with the quick turn in situation. The ginners have been very worry and are caution what market takes the next move.
On Saturday steady trend was seen as the official spot rate firmed and remained unchanged at Rs 3125. Phutti prices in Sindh and Punjab were unchanged at Rs 1500-1600.
Market sources said that the support price for cotton at Rs 3500 per 40 kg, per maund at Rs 3266, and phutti prices at Rs 1500 per 40 kg will be discussed in the Cabinet meeting on November, 4. About 11000 bales were bought and sold, price range being quite narrow.
GINNING UNITS CREDIT LIMIT:
Separately problem between growers and ginners and spinners and textile millers and their solution is creating hurdles leading to shrinking in exports. The country is facing wide variety of difficulties on such problems, which are restricted to only whimsicalities. The banks give loans to improve business and exports but on conviction recoveries will pay back and their profit will be certain. Others, however, are like ignored children for suffering in some forlorn places. The result is that the sectors has vast varieties of them suffered and today even best efforts cannot retrieve the losses without looking outside countries at terms simply impossible to enquire without the risk of eroding sovereignty of the country.
The ginners are as important as are the textile manufacturers and exporters. But they have been either for long were simply had no courage to request banks to release them loans and when they were considered the share was far low than could meet their needs. Farmers are on similar track until very recently when the big ones immune from being tax were loaned, while the small farmers had to cover their needs with tears or even death on failure to give back money to street lenders.
Pakistan was created after sacrifices of lakhs of men, women and children for all poor and rich to live in comfort and respect. If ginners need recommendation of Minfal to raise credit size, that clearly tells on the respectability of those who have been recommended, so much sacrifices for democracy has not ensured comfort and respect to the poor. All should ponder why this country was created for. The long 60 years when Pakistan hardly could pass a respectable living among the community of nations. Textile exports have continued to dwindle. Can't the authorities do to revert the situation if they really want to sacrifices part of riches Pakistan has given to them?
DEFAULT KNOCKING:
Sprinkle or power tons of money the default scenario change is as easy authorities are contemplation in various ways. Exports, in Pakistan case textiles, sports goods and some food grains are guarantee that continued to be ignored during the years without speaking and acting in pragmatic ways. Today as many suggestions to scale up this country to touch the height of Himalayas as many mouths possibly can murmur, the dent democracy has created is seemingly difficult to fill. And to begin travel should have started in 1947, will be patchy and uncertain. Some leaders who had looked deep into the system in the run pulled courage to give democracy a new name to have and end with the end of their rule.
In couple of new direction this nation run by certain percentage of people could not track down the way leading to the ideal Pakistan was created way of life and doing business as per ones desire.
Authorities do have claimed ever that they aimed at bringing equity, justice and fair play, the misfortune however is that these words are understood and possibly enjoyed by few who could be counted on figures. The suffers know how many times construction of dams for irrigation and power purposes issues are brought in light, reforms in police and bettering certain rules and regulation come in limelight.
The population census is important from time to time but expenses on it should justify the utility. The friends have come in the open to continue their race to over awe this in neck deep submerged into ailing Pakistan to stop IMF's bid to re-float economy, which however was above board. This blunt suspension is only short of action against a couple of countries a blot in the face of 21st century despite day in and day out violators access victims of human rights abuse.
In Khuda Ki Basti where thousands have billions in banks and business including Pakistan - Pakistan stand at the door of default looking for money to come from four corners!
UNDERMINING TEX PRODUCTS:
The textile products, particularly "wears", have lasting importance despite recession or like fears. The population in many countries are held in check but cannot be held on check altogether. The manipulators like setters, growers and even the cotton consumers can temporarily sideline to press sellers but soon they return apprehending mills may go inoperative and lift their immediate needs.
Thus trading wheels move on balancing the trading activity. The cotton growers, who in this country are compelled to sell as soon as they harvest. Holding cotton in unhealthy places after removing from fields bear chance of getting so called "yellow" exploited by buyers to dub that as having lost its originality and with that, even quality. The sellers first and the buyers later create room for reduction in cotton prices on count of being of low quality. The week under review has undergone several price changes, from keeping first firm and even rising on obvious fear of shortfall caused boy pest attack or some diseases.
The cotton ginners who often claim their familiar interest, quite often avoid payment for long period until they sold stock to their satisfaction. Prices, too are eroded in the meantime on stock piling.
The growers cannot do anything as there is no one playing as umpire in this country to deliver growers their due. Ethics, according to sources donot exist, rather market movement is strictly dependent on supply and demand - more surplus yield lower the price and if somehow production shortfall occurs prices go sky rocketing, if somehow supply/demand stay by any chance on even level, such conditions is created to give touch of shortage and scarcity and prices move on to any high the dealers so wished. Umpiring is a must to check wrong that has pierced into not only cotton and textile trade but all our national life, sources said!
DOHA TALKS ONCE AGAIN:
Call for giving effect to WTO from top nations make it amusing, as the poor once just wait for dictation. For centuries poor has waited for such days global trading will ensure both sides buttered bread. But so far bulk of world population has earned bread and butter for minority population. Themselves to remain deprived of two meals, medicines, education and religious rituals.
Unless a system, rules and laws are introduced to ensure minimum standard of living for all, which have been deliberately denied for centuries talking about organisation or institutions will rid of poverty is nothing but a hoax. The six years waist on debate whether the rich nation will part with its best or the poor.
The rich has time and again refused to give what the poor consider in the absence of which equity and fair play but a mockery. If a favour to its grower or experts rich wants to oblige with tell badly on the grower and experts of developed country. The experts from poor countries without doubt contribute what poor countries miss. The rich will do real good to return all experts from poor countries because in countries of their origin can't pay what their worth is.
The WTO is a still a conception in 21st century, while distribution of wealth among nations has been uneven since human being started travel into vastly different and prosperous countries. For the last few months much is being heard about WTO won't be given a concrete shape by the year (2008) end and may be take years for a deal. What difference it makes for poor country, which cannot add value to its God given raw material.
Those who have, are they ready to part with technology so that poor can make most of their raw materials. This has not been practically possible for centuries, nor is expected turn in scenario for a better ever - ever!
SMART ELEC METERING SYSTEM:
Finding fault with others is old for made and easy way keep charges away on oneself. The textile sector has been finding fault with move govt takes to save its skin. The latest is utility bill that is adding in a big way into high cost of doing business. Thus losing edge in exports. Someone in authorities keeping outside parameter of blame found out cure in smart electric metering system. Can meter pay for hundreds and thousands of companies, govt offices and officers who stand defaulted year after year and don't pay due bills. So called "Honda" users are immune from paying bills are only talked on TV channels.
How on earth metering system smart or of any quality can meet the cost besides faults wires and other instruments who not only need to be repaired but complete over haul can work? Complete change in thinking and feeling to begin a fresh to start building this country can work. The high laws and rules already existent or were mulling wont work. Every one particularly ones who are beneficiary and earning names fame and billion because they are Pakistanis if they don't change existing outlook how can federal system could survive and keep country united. System fault is much more result of fault thinking.
The sources had smiles on their faces when they were referring to increase in pay of govt officers for producing elements of sincerity and good result. But disappointment continued. The officers were then give free uniform, transport, and residences to see yielding positive results. The sources said have not people been following those facilities failed. Even rewards for good "Catches" miserably failed and rules and law were made tougher and tougher as system turn apart. Authorities should make a system, which can create fear for doing wrong.