The fast warning quality cotton has prompted buyers to frequent visit stations just in case they come across an offer of a desirable bale during the week ended on Saturday.
The sellers raised spot price, despite world rates going other way round, cumulatively by Rs 75 to Rs 3,100 without sales tax and upcountry expenses.
WORLD SCENARIO: The cotton futures sustained downward trend the quantum loss at the end of the last trading day was considerably low. The October opened at 61.10 cents and closed at 59.60 cents, while December started week at 59.54 and closed at 59.02 cents a pound.
The opening day trading saw future rise, but consolidated within the range of the previous session as traders sought direction.
Planting progress has been good across the belt and its probably to 80 percent complete, traders said, adding that now attention was turned to early crop weather and some observers were pointing to dryness in West Texas.
Second day's going was not different as futures turned a touch firmer on thin buying by small speculators.
Meanwhile, they wanted for the USDA export sales report to see of US cotton shipments well pick up sharply on the back of a marketing programme administered by Washington to gear cotton exports.
On Wednesday futures turned easy on speculative and option-related commercial selling. A trader called cotton as sick puppy, adding fibre contracts would turn the situation onward soon and the market may see further losses in days ahead. On Thursday futures again suffered on option-related speculative selling.
Analysts said further volatile business seemed likely ahead of the holiday weekend.
The market will be closed on Monday for US Memorial Day. On Friday cotton futures finished mixed with nearly months up on speculative and option-related buying as players adjusted their positions ahead of long holidays. The market opens now on Tuesday.
The sellers had been waiting for this day when quality cotton will be sold at prices that will satisfy them since mid-week.
The prices showed persistence in rise. This was against what happening in the world markets. Locally available even at a bit higher rate saves buyers from manifold problems if they go for importing cotton.
The spot rate of Grade III cotton was upped first by Rs 25 and after a gap of a day, Rs 50 was raised to make Rs 3,100 without sales tax and upcountry expenses. On the first day, 2,800 bales changed hands.
The figure included Saturday's sales. The official spot rate was unchanged, but asking prices in ready was above spot rates. Sindh and Punjab cotton was on offer. According to relevant sources all was quiet on the market on Tuesday. The spot rate was unchanged at Rs 3,025.
The firmer prices were making spinners to want for some favourable moments. But report that quality cotton bales were warning, made sellers determined to hold on prices or even to edge slowly and gradually.
The inquiry about cotton increased and ginners found the opportune moment had come. In the meantime, spinners return to marked was quite visible.
The ginners increased rate by Rs 25 to Rs 3,050. The rate in ready remained higher even. In all 6,000 bales changed hands on Wednesday.
The next day, Thursday, saw even better trading when over 10,000 bales traded, and sellers notched prices up by Rs 50 to Rs 3,100.
The rate in ready touched as high as Rs 3,300. The spinners were worried, they were expecting prices will go down on the pattern of international rate, but ginners had different perception from the buyers.
On Friday, some four deals were struck amounting to 3,000 bales at higher prices that they were early in the weak or before.
The official rate was reported at Rs 3,100, while ready cotton was being disposed of much above the spot rate. Saturday's session had no major development except that spinners took a day's respite after three days of continued buying.
The ginners wisely kept the spot rates of Grade III unchanged at Rs 3,100 without sales tax and upcountry expenses. Market sources said textile mills have still to buy cotton as they are facing a shortfall of 20 lakh bales, which will have to be arranged.
TEX MILL SHIFTING: No wonder businessmen say exporters run after gains. If certain textile industry is planning to shift Punjab for they see gains in the more and they are within their right to do so.
A recent story informs that land in Karachi today costs 10 million per acre more than in Punjab. A leading textile miller Ghulam Ahmed Ismail said that this alarming increase in the cost of export-oriented industries in Karachi, which he apprehended would be further hit by proposed increase in gas prices.
He informs that in Site area land cost Rs 35 million per acre, whereas in Korangi and Landhi industrial estates it costs Rs 25 million.
Adding to the list of disadvantage Ismail said construction cost had also gone very high, which has hampered the execution of expansion plans by several textile export units.
In pointing the disadvantages he was enlightening the authorities, which he thought authorities should provide a level playing field to the exporters of Karachi so that they could compete well in the toughest time.
However, the relevant people think slightly distant from merely keeping in view Karachi as costly place or two areas in Karachi carrying prices wide apart.
They question whether do Karachi offer advantages that are not available in distort places existing away from ports and important offices serving as facilitating exporters in many ways.
About other grievances such as textile units facing acute liquidity crunch due to non-payment of refund badly needed by the exporters to implement the expansion plans and prepare themselves for the booking 2005, should be attended forthwith.
The export targets rising every now and then from $12.1 billion to $95 million in some years could only be possible if exporters listened to what they complain about and how authorities should come up with cure. Time is up, indeed.
OPPORTUNITIES: The Pakistani exporters have gathered much more, more experience than many countries, which awe much to this country for flourishing in textile products and exports such on being South Korea.
A new opportunity and invitation is beaming out from friendly China for a show schedule for September 1, 2004, at the Shanghai New International Expo Centre. But the test is in submitting original textile designs with the theme of "family love". Pakistani exporters with vast experience owing to competing and selling products world-wide particularly HEIMTEXTIL in Germany year after year will surprise with their design that will force visitors and buyers to blink.
The time is also quite long at hand to pounce upon thinking and creating to come out there with flying colours in dozens of other competitors in Shanghai. The interested quarters will be longing for the day to hear good news about Pakistani exporters' performance.
TAIL PIECE: The task should have been pointed out by our diplomats in Sudan. However, thanks go to Sudanese Ambassador to Pakistan Awad Muhammad Hassan said that investment opportunity exists in Sudan by private sector, which could bring the two countries even closer.
Question is were the Pakistanis not aware so far that Sudan's textile industry does not meet contemporary requirements.
He called for Pakistan investors to go to his country and introduce new technologies so that both the countries could increase their income.
The opportunity has come on the Pakistani textile magnates doorstep. They should step forward and come up to the Sudanese brethren if not any natural hitch is in the way, which had kept them away so far.
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