The cotton buying took panic shape after first day's slump due to rain and cold spell when modest buying was seen. But the venture by some to predict more imports near 2.5 million bales restrained ginners to hold prices steady spot rate was unchanged at Rs 2525 .
WORLD SCENARIO:
The cotton contracts in NYCE trading finished weaker as small speculators won't stop modest sales without getting at the market players attitude while eagerly awaiting the weekly export sales report to have a firm grip on a directional change was a welcome.
The opening March closed 0.27 cent to 53.46 and May end down at 0.09 cent to 54.81 cents a pound. The opening session saw futures come under effect of speculative sales while others waited for USDF two reports for a directional change. Traders informed that the focus of the market may already be shifting from supply to demand, focusing particularly on the USDA's estimates for US cotton exports and imports from China.
Speculators again made some sales in quiet trade and others awaited fiber contracts need news to get out of this stage. But brokers put water on hope by saying that there was little news to inspire cotton prices and players would be looking for direction from two reports, weekly export sales report on Thursday and demand and supply report next Monday.
The third session was as usual with no feature to show the way to the aggressive buyers or sellers. Naturally, therefore, small speculators showed up to move some more aggressively. Analysts said that cotton futures ended lower, as they observed that market opened steady, slipped to its lows for the day, and then came back as small speculators traded a narrow range in the pit and stayed there. Others observed that it was boring because people were just holding back to wait for all those reports to come in. Once we get supply demand out of the way, we will see more action in this.
On Thursday despite small speculators bid prop up futures but due to sober reaction in the market about the weekly export sales data amounting to 136,000 RBs against trade higher prediction. Cotton shipments reached 141,600 RBs, somewhat lower than trade belief. However, players remained focussed on China's orders, besides, supply/demand report on Monday.
On Friday slight change was marked in the trend as futures anded mixed. The speculators halted as Monday might offer then some push. Supply/demand report is expected on markets reopening. The March fell 0.33 to 52.73 and May shed 0.24 to 54.11 cents a pound.
LOCAL TRADING:
Spinners were not to sit back but heavy rains, cold spell following, transportation ad pick hurdles buying remained modest but then the buyers went on rampage on fears cotton will be damaged and supply would be down besides prices jump. The PCGA was prompt and issued arrival statement saying it was 8,977,000 bales around two lakh more than this time last year. But buying was so haphazard and unplanned nothing was clear. Spot rate stayed at Rs 2,525 though in ready quality cotton buyers went up to Rs 2600.
On Monday rains and cold were hurdle in picking and transportation, Naturally therefore spinners/millers had to depend on quality cotton at higher asking prices, only 10,000 bales were lifted . Phutti was selling at Rs 1350 in Sindh. Once shift climatic change was in evidence buying pace swiftly went ahead.
Second days kill was better than Mondays at 18,000 bales, showing the urgency spinners were attaching to store as much as possible, before reports start coming about cotton getting yellow and other disqualification. The rate range between Rs 2450/2600. The buyers were not sure the arrival pace and weight would not be in their favour.
On Wednesday the spinners were pretty disturbed about the likely pace of arrival and cotton quality which is their first preference. They were paying more and praying cotton continues to stream in into the ginneries and cotton markets. The spot rate and asking prices were not changing rapidly. Seed cotton was also selling at Rs 1325/1350 without visible change.
On Thursday fear- gripped cotton consumers were stated to show panic buying as prices remained steady for the day but hazy outlook about final cotton output when skies went clear and field dried. Spot rate was unchanged at Rs 2525 and rates in ready ranged between Rs 2440 and Rs 2600. The 20,000 bales changed hands, particularly of higher quality as spinners and textile millers were more concerned about quality rather than quantity.
On Friday at last spinners slackened their buying to give some insight to the ginners. The price trend, however, was not a bit changed. The Phutti prices and rate in ready held at previous day's level. Only nearly 11,000 bales changed hands.
On Saturday buying accelerated as mills preferred to enter into new deals.
Months have passed when somebody perceived textile city, no perhaps textile cities, Textile millers were left flabbergasted for nothing.
Somebody heard and others not altogether their shrieks that find out knowledge based sector to make Pakistan progressive and prosper. The perception behind the textile city was that when globalised trade become a reality, more bed sheets, more hosiery products and abundant ready made garments will need to be exported.
But background of the shrieks following the first publication of textile city news was that how millers, the knowledgeable circles said, will prepare themselves to compete, which they have never been used to. They had dozen of harsh piece of advice from international exports regarding cotton that they considered rich gift of God. They wanted that it is injustice for the country to export cotton and yarn rather they must earn 10- times more by manufacturing and exporting apparel, garment, towels and such things.
But the advice always fell to deaf earn and govt of the times also showed utter indifference as cotton and yarn exporter would boost exports highest at $5 billion singly. A rather serious bid was made by Late Dr Mahbubul Haq, but he was made a future as much the south Koreans even claim of Dr Saheb's great success.
A host of tried cures have been placed before the govt but all were coldshouldered. Setting up textile cities, textile machinery plants, units to produce chemicals and dyes have not been tried. The dreaded regional competitors have cotton, import cotton if more is needed, produce textile products with locally manufactured dyes and chemicals, which made them cost effective and competitive, in the absence of which this country nags and keeps nagging.
EDB LOOKS FOR INVESTORS:
The Engineering Board Chief seems to have been too optimistic Pakistani who has lured investors as in his view the vast opportunities in component manufacturing sector. These days wide varieties of conferences, seminars, workshops, exhibitions etc are being held . Chief, as optimistic, he advises to come forward and invest in several areas, he has mentioned. Thank God he has no reservation over security matter as the most investors have. He possibly has confined his call only to Pakistani's who have to live with the bad or good condition.
Well, no harm in giving a call, and response must com in scores as the vast portion of earning obviously are investors own and only a marginal share they have to, if they like share with govt in various ways. The EDB Chief however will be on safe side advising of investors come forward, to advice them in clear terms that they must have small or big manufacturing units and not strain their minds to calling shop in reality. Unfortunately the difference is not acknowledged correctly by many naïve people who pester govt for help to continue the shop.
The EDB Chief certainly has been aware that there is something called infrastructure which investors insists to have available. Today the authorities have to go on telling people Pakistan has golden chance for investment. But if ever one investor came, had reservation in his hearts of heart. Otherwise, in this world where a few persons posses the wealth of half of this world, investment would have come like rains but they drop only few and far between. The citing the following example does fit in the top being discussed.
Not years back but a few months back the manufactures and exporters of value-added textile goods were wrapping up, not entirely, to go and set up joint ventures in Bangladesh.
If they had made up their mind to go to Ukraine or Poland that would have given a signal of accepting challenge that Pakistanis had so far as problematic and required hefty investment, pooling courage which is hard. God help EDB Chief and component manufacturers to surmount the task.
DIVERSIFICATION:
Perhaps no one, but the US and EU have been made textile export destinations by this country. Why necessarily is known to them and perhaps to many others. Indians have untouchables, but what's harm if exports are confined to just one or two. But problems is serious, if for any reason, for example dumping reason you have created business falls with a thud.
Even today, with EU Pakistan is under partial punishment as out of 13 pc total, five PC relaxation was granted some months of break, and now bigger problems have crept in. The Chinese and Indians have penetrated there with aggressive mood, but Pakistan has no mood at all to compete. The others two named countries, and may be one or two additional may be enjoying govts favour and doing roaring business is just possible. When such serious moment don't deter your, your have many options but your mood must be aggressive. Oh, no the govt should extend all what favoured countries get from their govt, should be available to Pakistani exporters of value addition.
The poor selves are politely draining home that they could increase the export earning 10- time more not just $5 billion but they are not heard. The knowledgeable sources said but were not sure whether they will succeed, in fact their problem costly yarn remains as ever. They had been reminding govt that yarn exports have been continuing at harmful pace and the exporters should be restrained so that value-added sector could make more and export more.
But the govt was so much pre-occupied with other responsibilities that authorities practically sectors either make or operate the policy they think what is right. Or the sectoral important leaders have some favourite a grade down to stand by him if higher ones just in case express anger. Whatever has been the traditional politics or trade or exports, sources said that look around and prosperity is nowhere nor under the trend prosperity can be expected.
IT'S ALL MONEY THAT MATTERS:
It was slipping out of memory the sweet pang as the textile exporters complain about Rs 100bn or so fund EOB has accumulated. It was certainly not the desire they should have that fund somehow. they could have beaten the regional textile products exporters blue. They are never out of woods, but can he said to be little upset and flabbergasted.
Only when the earned $5 billion through exports and for six decades no one stressed for more exporters were not so. Unfortunately, since 2005 beginning and before perhaps that authorities thought of textile vision-another vision 2015 has since not been heard any more should it not be a vision offer that China's top economic leaders gathered recently to decide economic policies for 2007. Not in Pakistan alone elsewhere also people grope for a better prospect, despite China's spectacular economic development.
Those who combine ones own investment viability, own stamina, handwork, education and knowledge, take for granted that he will be able to handle himself with the assistance and help of employees (sources refrained from mentioning about skilled labour). And if you have a desire to learn and opportunities come in the way only then you can be successful.
In Pakistan carpet sellers on roads transferred money to Pakistan after partition set up industries unpadded and established schools colleges and shared in setting up universities. The tradition has outlived and is heard in murmur an institute to serve the firm with efficiency.
Nay, a textile college do also exist in Lahore or Faisalabad where skilled officers are being produced. But that college also has on record of management or the patrons making that a private matter. But strike by some enthusiasts stood firm in the way enrolling some students belonging to close ones. Just for change another report in newspapers the other day proved to be mouth watering and tempting. An edition incharge saved an item from going into the waste-basked and headlined as "World's richest two percent own half of global wealth - indeed most of them must have been renowned industrials engaged in doing various businesses tat may incidentally be from textile, too.
TAIL PIECE:
"Lack of professional training, quick promotions, vertical ascendancy without horizontal movement and without gaining experience in multiple disciplines of the top and middle management and cross country transfer of staffs without planning a regular career path for them resulted in planned deployment of unprepared human resources leading to imperfect operations."
The above, an extract from a learned article perhaps also explains why industry, educational or vocational institutions middle and low cadre must move step by step to gain experience and then reach zenith. However, as against this industrialists need some money in pockets and hefty political clout-textile and sugar sectors are prolific.
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