Ginners went on the defensive last week owing particularly to two reasons. One, because good monsoon rains had enhanced production of good size, and second, when chances brightened to sell at better asking price, the TCP entered the field to balance the market trend. The spot rate thus began softening. First it was cut by Rs 25 to Rs 2575, and again on Friday by another Rs 25 to Rs 2550.
WORLD SCENARIO:
The contracts on the NYCE showed firmness as USDA seemed to slash estimate for US cotton to an average of 19.635 million bales of 480 lb, down sharply from earlier estimate of 20.7 million bales. The most imminent factor remained the drought-hit areas of Texas and the South, where most of US cotton is grown.
There was wait for Chinese demand because China is Number One buyer of American cotton.
India was also reported getting ready for a bumper crop. Some areas still needed rains, which would further improve prospects, its impact on prices could be depressing.
Cotton growers, as all other sectors, seemed concerned over surging oil prices. Its effect was visible on trading, as October contract was up sharply 1.21 cents to 51.89 and December up 1.06 to 53.71 cents a pound. Texas dry spell and oil prices kept cotton prices firm. The players felt considerably dejected on reports that Israeli attacks had been on the rise leading to rise in oil prices.
LOCAL TRADING:
Prospects of good cotton crop at home enhanced by good monsoon rains and better crop position in neighbouring India.
The opening day saw cotton market opening with bearish trend as ginners slashed the spot rate by Rs 25 to Rs 2575 and prices in ready also showed some slackening. TCP had a grip over trading in the market, which made it sickly.
Phutti arrivals at the ginneries have begun but small quantity has deterred the ginners from starting ginning operation at full pace. The official spot rate remained unchanged at Rs 2575 per maund.
On Wednesday, prices remained firm. Around 200/300 bales changed hand at around the spot rate.
On Thursday, low level activity was evident as millers strictly lifted only their immediate needs. Official spot rate was left unchanged. TCP floated tender for 42,000 bales. It also decided to accept bids for 12000 bales. A solo deal was reported in new crop, priced at Rs 2450 per maund, for delivery around August 25/30.
On Friday, the ginners realised that times had changed and therefore slashed sport rate by Rs 25 to Rs 2550. Meanwhile, new phutti started arriving in Burewala, Chichawatni and Sahiwal and ginners have started ginning.
THE BEACON LIGHT:
Thank God, at long last, the Prime Minister made history by ignoring Rs 50 billion package demand and hurling tacit warning exploiters of govt, banks and borrowed money, hungry men in the streets producing export products on hackneyed machines, to forget looking for govt help, year after, for various packages, facilities etc, and try to stand on their feet, and see reason and either leave the sector or stand up to offer challenges with their textile products to the Chinese and Indians instead of what they have been depending so far.
With the refusal of textile package of hefty Rs 50 billion they will miserably fail to rub shoulders in Islamabad any more, sources said. Some reports clearly said that PM Prime Minister Shaukat Aziz did not accede to pressure of textile industry seeking relief package of Rs 50 billion.
IRKSOME EXPORT PERFORMANCE:
It is hoped that all concerned would realise that $800 million shortfall in export target is disturbing and disgusting. The PM is reported to have expressed displeasure over the performance of MOC over slow exports growth. Sources posed a question whether those responsible for slow growth were not sorry and would take account where lapses occurred?
The disappointment was so indulging that neither the export target for current fiscal year nor any specific proposal to enhance exports was discussed during the meeting held specifically to discuss Trade Policy 2006-07. Secretary Commerce Asif Shah made a representation on various aspects of trade policy. However, several meetings would now take up the trade policy before announcement.
FACING INDUSTRIAL RECESSION:
Pakistan Textile Exporters Association (PTEA) chairman expressed the opinion that the shortfall of $800 million in exports target has triggered apprehension of industrial recession. The PTEA has emerged late among the textile organisation of textile known. But a chairman's opinion, who heads an organisation of textile exporters' concern, has not only to be shared but looked around whether something is at hand to reach for countering the same. He very rightly told newsmen that that he had been warning the govt of the progressive decline. The figure presented to the govt with suggestion to do something by chairman's own association was simply staggering as exports of fabrics, which were 302 million square meters in July 2005 had in seven months slipped to 182 million sq. meters in January 2006. Value-wise, he said, it registered a steep fall from $207 million to $154 million. The only way, he said, was that the govt must provide even playing grounds by making cost of gas, power, water etc rational and there was not much time left. Some months back over two dozen knitwear units were sick in Sindh and Punjab. Whether the govt arranged oxygen for these knitwear units or not is not clear.
IGNORING PACKAGE FIRST SHOCK:
By ignoring textile package sector, sought by exporters, has done a job more important than all works he has listed he has offered to his nation since he became prime minister (no less as a finance minister), knowledgeable circles, expressing, regret said. They hoped that PM would harbour no apprehension or fear, no setback to his high seat.
Rather, he has set an example hitherto exporters had never had to face. One very surprising outburst was seen in the offer of resignation by so dearly inducted 'textile minister'. Resigning just for failing to get some money from govt would prove to be unprecedented.
He still has to continue with work and with patience until entire potholes creating road blocks to progress and prosperity are cleared.
TAIL PIECE: A big six-column news report in some papers obviously conveyed least concern to people that WTO states had agreed to ease approval of regional pacts. But those who follow various interests of WTO members were not at all touched by offering of 'sweets to children who were refusing to board the school bus'!
It is long time after 2001, that at one time the US revealed steps to please no one but itself. Similarly, the following day EU trade official Mendelson, and now WTO chief Pascal Lamy, were making 149 members to believe ln 'wait until last moment jump in ecstasy'.
But the sum total remained unaltered in substance: 'wait until the 2006 end' for a smile. The last of the 'hope' has been tried by offering news of approval of the regional pact by member states. This was rightly observed by British PM Tony Blair, who has appealed G-20 summit in Russia to avail last of the chances.
Please wait until what transpires from G-20 meeting next week for more!
Comments
Comments are closed.