Ever rising cotton prices and closures replete with religious fervour and the other ghastly blast subdued during the week ended on May 8, 2004.
However, ginners prompted by bullish world trend raised spot rate almost every alternate day to take the same to Rs 2925 without 15 percent ST and Rs 50 upcountry expenses.
WORLD SCENARIO: Cotton futures maintained upsurge though trading witnessed seesaw game in which short-cover buying and technical lifting mattered. But the traders observed low-volume depicted the boost was not lasting. The first day's trading was not available on it was a local holiday.
However business on Tuesday depicted weakness due to firmed trade and option related selling. There was scattered trade-fixation type buying but not a lot, they said adding with low volume this is about building a base after last week's crazy ride.
On Wednesday cotton futures charged higher in closing minutes. Fundamentally traders said many participants were just marking time before they get the planted acres numbers in June to see how the planting season goes.
The futures rose at 8-day highs on trade and ? buying and a lock of selling in another light volume session.
The USDA meanwhile reported in its weekly export sales data total sales of 156,700 running bales (RBs) up from last week's 351,000 and 29 percent below the four week average.
Elsewhere export sales were better than expected and shipments were expected, traders said. They hoped that was pretty supportive to cotton futures. Closing day's trading also saw futures higher on heavy fund and speculator buying and options related interest by big merchants.
Analysts in Toronto maintained a bullish bias on cotton. They said viewed the market as now focussed on next Wednesday's May USDA supply/demand report, which is seen taking the first broad look at the 2004-05 season and giving further guidance on key issues like US and Chinese output.
LOCAL TRADING: Trading in cotton was interrupted twice by a holiday on account of Jashne Eid-e-Miladun Nabi (SA) and on Friday when a blast hit a mosque in city though cotton prices continued to swing upward amply supported by world cotton rates.
The rising trend prompted spinners to accelerate buying a few more bales than usual. Spot rate that began at Rs 2875 closed at Rs 2925 without ST and upcountry expenses.
However, first days transaction saw some 3000 bales changing hands belonging to both Punjab and Sindh. Prices ranged between Rs 2400 and Rs 3100. Official rate began at Rs 2875. The spot rate was raised by Rs 25 to Rs 2900 signalling spinners that time had come to purchase cotton. Nearly same volume changed hands of Wednesday also price range between Rs 2625 and Rs 2800. Modest trading was marked on Thursday prices ranging from Rs 2400 to Rs 3100.
The ginners were willing sellers of low quality lint at low prices. The slow moving cotton market got abruptly disrupted due to a bomb blast in a near by mosque. No deal was reported from anywhere, according to usual sources. The official spot rate was upped by Rs 25 to Rs 2925.
The weekday saw same condition and no trading was reported. The spot rate was left unchanged at Rs 2925 to assess situation before any exercise is required.
GSP EXTENSION: The PRGMEA logic to get GSP faculty restored sounds reasonable on the ground that third generation agreement has been signed finally.
The PRGMEA Pakistan Readymade Garment Manufacturers and Exporters Association is appealing to the EU to restore the facility to sustain clothing exports to the EU as Pakistan was already reeling and 31.1 percent anti-dumping duty on bed-linen.
That's why developed countries and countries soon to catch up with the developed countries the China and Singapore have think tanks to think and create things. If the approach of the PRGMEA yields results and EU agrees to the proposed it would be a great feat.
The association plans to urge EU to extend the general system of preferences facility of clothing exports from Pakistan beyond December 31, 2005.
Withdrawal of GSP facility would affect clothing exports to a 12 percent duty. He points out that EU being friendly country cannot just see dwindling economic activity in Pakistan specially laying off labourers employed when GSP concession 21/2 years had generated a lot of economic activity.
Besides consulting lawyers the chairman plans to take the plea also to the commerce minister to help textile industry stand on its feet during the forthcoming still free trade competition.
The old in the way is that authorities have stated firmly that govt of Pakistan had no intention to challenge in EU decision because the decision was based on authentic trade data. But Pakistan can approach on compassionate grounds to provide assistance to compensate duty on import of clothing from Pakistan.
TEXTILE MINISTRY: The import report inevitably contains that machinery-textile machinery has been streaming into Pakistan.
In private takes also textiles related people talk of much higher figure of production that should be produced to meet enhanced production as soon as the quota system goes after December 31, 2005.
A recent report indicated that a team of Pakistan cotton consumers will go to Tajikistan for exploring possibilities to import cotton from that country. At least too textile cities are being talked likely to be set up soon. So much hurly-burly vindicates that textile millers are bound to plunge head on into the world markets with reservation of quota.
Under the circumstances, no other than the Prime Minister Jamali himself aired the likely announcement of textile ministry one federal and the other separately for Punjab.
That was followed soon by a ministry in Sindh. The fast approaching world going globalised needs that a textile ministry-long being voiced is announced at the earliest.
TAIL PIECE: The PRGMEA zonal chairman's outburst against EPB is understandable. The exporters have not been informed about the selection whether they had been selected for Las Vegas Fair.
He warned the delay in finalising names of the participants would deprive Pakistan of the special attention due to its status of a focus country. He pointed out that country manager for Pakistan of the ASAP fair was in Karachi to provide assistance to the participants and assess their special needs for exhibiting their goods in the fair.
PRGMEA would invite country manager but how could it do so unless it is sure its members have been selected. It is hoped PRGMEA concern will he removed and soon.
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