Ready cotton business on Thursday was mostly easy with modest turnover with government allowing import of pending stocks which were held up in India for about 300,000 bales of cotton and reportedly another import buying of 100,000 bales by the mills, domestic prices were mostly subdued.
On Thursday, seed cotton (Kapas/Phutti) prices in Sindh reportedly ranged from Rs 2600 to Rs 3200 per 40 Kgs, according to the quality. In Punjab the seed cotton prices were said to have extended from Rs 2800 to Rs 3400 per 40 Kilogrammes. Lint prices in Sindh were said to have ranged from Rs 5700 to Rs 6500 per maund (37.32 Kgs), while in Punjab they reportedly ranged from Rs 6100 to Rs 6500 per maund. Prices of higher quality cottons were down by Rs 100 per maund.
According to the seed cotton (Kapas/Phutti) arrivals report issued by the Pakistan Cotton Ginners Association (PCGA) for the current crop (2016/2017) upto the 15th of December, 2016, ginning factories received seed cotton for 10,147,941 lint equivalent bales (155 Kgs) from which the domestic mills lifted 8,451,386 bales. The exporters have picked up 194,844 bales while the ginners are holding 1,501,711 bales of unsold cotton.
Lack of buying of cotton yarns and some other products was reported as mills were said to be asking for higher prices. Lack of buying of yarns and some other textile products is also reported to be due to accounts closing for the end of the current calendar year. Banks are said to be asking the mills to settle their accounts due to the closing period. Also, year-end closing for the birthday of Quaid-e-Azam and Christmas on the 25th of December have also slowed down some activity.
The current year's (August 2016/July 2017) domestic cotton output is projected at about 10.8 million bales (155 Kgs). Consumption is being reported to be about 14.5 million bales. Mills in Pakistan may needfully import 2.5 to three million bales of cotton. China was said to be making enquiries for the import of some yarns and textiles from Pakistan. However, due to higher price offers from Pakistan, business was reported to be modest.
On the global economic and financial front, fresh developments keep raising their head in a hitherto unseen manner since the end of World War Two ending in 1945. These incoming changes promise a reorientation of the global socio economic and political order.
In the United States of America, the traditional polity has been shattered leaving it in utter disarray. The American political history has hardly seen an instance as the success of Donald Trump becoming the president-elect of America despite a considerable opposition from his own political party viz the Republican Party. Moreover, Trump burnished his own brash brand of electioneering during the presidential campaigning and has assured his entry into the White House come January 20, 2017. Only time will tell what impact Trump's impending entry into the White House will have on the American politics, and indeed in the world at large. Not only the Trump bandwagon has gone viral, it is said to be becoming universal.
Other significant development around the world is the unimpeded and continuing rise of populism, nationalism and rightism in Europe not seen since the 1930's and 1940's of the 20th century. This has left the Euro wobbling in the currency market all too often. More specifically, Italian banks are already on the edge of the precipice.
The Eurozone economy is said to have lost momentum and as a consequence the business activity has dropped to its lowest level over the past one and a half years. Analysts say that slowdown in the services sector is primarily responsible. Observers hardly see any scope of an upturn in the Eurozone as the Zone has lost its momentum as its economic traction is difficult due to fragility in the region.
In many countries around the world, money is in short supply so that several economies are stuttering. Recently, many a scrip on several global equity markets hit record high levels despite lack of any solid rhyme and reason for the bullish upward push. However, several investors have now moderated their buying spree and an anticipated lull has influenced the equity markets. Otherwise, earlier in the week both Dow Jones and Nasdaq indices reached record levels with Dow Jones closing just short of the 20,000 mark.
Earlier during the month, the United Nations had warned that human rights standards are under tremendous pressure all over the world and the "Rhetoric of Fascism" is spreading fast in Europe and the United States. Such a situation is dangerous for the protection of human rights. It is thus amply evident that the threat of erosion of human rights and the highly volatile and vulnerable condition of the global economy need urgent attention.
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