Slow buying on cotton market

Buying on cotton market was by all standard slow, ginners sparing no opportunity to raise asking prices and millers going slow to press them and add to ginners worries by looking bound to get govt permission to import Indian cotton. The spot rate was left unprovoked, though in ready asking prices budget either way. The spot began at Rs 2550 and close of the week.
WORLD SCENARIO:
The speculative seller were in the market or some merchants buying that filled some colour in the trading, as wait for Lunar year festivities sufficiently delaying in getting orders from China, which will set the trading pace besides next month's cotton council meeting which will reassess plantings for 2007.
On Monday speculative selling sent futures of particularly early months slip. The protest of Canada and other will have to be waited on Agri subsidies. The futures opened-March down 0.46 cent to 54.09 cents a pound and May lost 0.31 to 55.17 cents a pound. The second session was substantially higher and market operators papered optimistic as they said the activity may set a trend. Others said as there was no news the to chemicals were affecting the activity. On the third session my direction providing news was still absent and some merchant buying pushed futures up.
The market operators expressed disappointment as they remained bracketed in a range that was set on January 12, 2007. The wait for China is stretching as lunar year festivities continued. The nest month's cotton council meeting was also awaited which will reassess the plantings in view of WTO which was been held for subsidy issue not coming to a satisfactory end for those who are hit such as cotton growing countries in Africa and Asia,
On Thursday small speculators selling sent market activity depressed. The players are anxious to hear some news that can offer them including news about China's buying and reassessed plantings report next month. The last report of last session showed weakness as speculators indulged in nominal sales in demands that have continued depress, in wait for Chinese interest and final planting report by NSC release next month.
LOCAL TRADING:
Trading in cotton slowed throughout the week, as both the sellers and buyers were offers their interest ginners aimed at selling at higher rate owing to supposed shortfall in cotton production while buyers were looking for quality and cheap cotton which apparently available next door. The spot rate remained under pressure while rate in ready fluctuated between Rs 2590/2635. On Monday spot rate opened unchanged at Rs 2550, while more or less 15,000 bales changed hands.
The slow pace was obvious because the ginners were not ready to cut prices and miller went for quality cotton saying they were paying higher. The second day's trading was market by reservations touching high as cotton consumers pressed govt for allowing Indian cotton through Wagah. Earlier bid to get Jodia cotton was resisted by Minfal on grounds that cotton was available for mils and any import will affect growers and ginners. According to reports millers have already imported 14 million bales or were planning was not clear.
On Wednesday 10,000 bales were sold as according to report, exporters of cotton were in the market doing shopping. These buying has saved prices from nosedive otherwise they would have come down with a thud, Thursday session made it clear that price war would deepen. Market sources reported phutti prices going up between Rs 1000 and Rs 1325. The ginners were faced with adverse situation and they were not funding way to raise asking prices.
The private sector's occasional buying have kept ginners afloat as govt is faced with elections in October. Authorities won't do anything to disappoint cotton consumers, sources who have seen trend through years expressed. No deal was reported. On Friday more or less same trading pattern was witnessed.
The trading was dull. Only difference was that two deals could be finalised. The spot rate was same Rs 2550. In ready two prices remain in the same level. It was not clear exporters of the millers truck the two deal on Saturday.
WHY IT TOOK DECADES:
In is good that results have started showing shine and importers could genuinely take it for granted that Pakistan will now be able to supply them quality cotton, better value added yarn and textile products.
Sorry, that they had to wait for decades, but now, may be cotton ginners produce dirt free cotton leading to be a clean cotton culture here. Though, it is certain those who will embrace our cotton or textile products will never know the background for inordinate delay.
Now, it is hoped cotton exports will be stopped, and so imports in million bales. The knowledgeable circles nodded that Pak trade policy makes both imports and exports allowable. But SITE area has neon-sign on top a high board that buy Pakistan and be Pakistani. There is another culture, which has be abandoned.
The culture of importing cotton in the name of quality and in fact to subdue the stiff necked ginners. If not anything else but for ethic sake locally produced cotton should be allowed to be lifted and cotton bales saved from burning on road or in front of press club. Unless feelings for growers and ginners are made honest and love-ridden how can you expect production to go up 15 and 20 million bale in some years? The tactics could be applicable any where on earth but should not be in this country. Suppose growers are asked or one day they judge they need to grow more to meet the entire needs of blooming textile millers, today faced with globalisation bump. This is not a story or a fiction of somebody's mind, but growers have stamens and urge to help millers to help themselves.
But millers should have soft feelings for the growers so that they get a food return. Give and take should be made the criterion for smooth trading and business.
Think what if god had not bestowed upon people of Pakistan who gave land worth production of cotton, wheat and Singapore rice etc speaking about cotton it world position is only fourth/fifth and in quality Pakistanis had taken for granted that quality can't be made better. Today, though after 60 years, producers are celebrating for supplying lint free cotton. Now, exporters, your must add to make cotton exports of textile products.
INDUSTRY AT CONSUMER COST:
A series of articles concerning poor development and bruised economy of Pakistan are enlightening and show the path to recovery, if so Pakistani's politicians, businessmen and exporter so want.
All these lengthy prescriptions appeared in newspapers and without one ca say all referred above must have read or briefed. How they will react is what has to be watched as article or editorials are supposed to have not tired to tell people how to mend the dented economy and sickening treasury etc if anybody could have followed, Pakistanis would have owned textile manufacturing plants by now. Dr Ishrat Hussain did not utter these words just not for nothing but to inspire to act.
He once said, the occasion was relevant, as machinery imports were being discussed which have throttled the progress of this nation. He had said, and only few months back he was about to have been relieved from Governorship of State Bank of Pakistan (SBP), that China imports machinery and make stereo types giving colour and design which spoke and loudly that it was make in China. China has helped Pak in many ways but Pak had not gained from Chinese techniques and technologies, rather showed no interest because investment is what Pakistan talk.
A very relevant person who was every thing of perhaps Taxila Mechanical Complex (TMC) revealed that the complex, helped and aided by China, was soaring and when it slowed its worth, by producing full sugar making plant and was immediately attracted countries for imports, interest instead of going high method away. Those who have been mentioned also urged the rulers of the country to change the import policy entirely and start re-building TMC and forge and foundry before Pakistanis progress, and prosperity was desired.
Others of their sorts had always been telling that don't force scientists and engineers of worth to leave country. But all who could retain did not want to pay them matching their worth rather brain drain was allowed for few chips they would send back to their country for imports of machinery, dyes chemicals and even perfumes. At the moment the learned people suggestion needs to be adopted for the good of the county. But authorities too busy in tacking exporters.
CONCESSION TO TAX PAYERS:
The textile exports target should scale as high as $14.5 billion by 2010 after expected $6 billion investment in three years. As the noise is in the air of very bad export plight owing to globalisation, the govt silence on its fresh package of Rs 80 to Rs 100 billion demand in deepening the harassment. The sources welt versed in cotton and textile business appeared quite apprehensive that textile sector is again tightening up belt for beefing up the small efforts make.
The investment in the wake of 2005 textile vision lead to harassment of the tax payers and govt seemingly is also mindful of the expected election in a few months time. The PM and president should particularly worrying not for the high set but the system president has set rolling should be strengthened and sustained.
Besides, growers were also upset as voice in favour of value addition was also deepening particularly manufacturer and exporters of clothing and garment. But one roadblock was ahead as they thought of vocational and training institution were not in sight. Unfortunately those who were engaged in annual export earning of $ 5.5 billion had never in mind that the labourers round the periphery of Landhi and Korangi or Site industrial area won't always he serviceable even if one day talked about WTO had knocked at the door. And like China and India or those who are blocking Pak products in the patient US or EU, by setting up network of vocational and training centres, had also had dozen spread over in this country.
But the shock they are feeling within can not stop unless some ways are found to wayward but quite a few of them read up to VIII class or even Matric to be engaged for filling the place of unskilled -- employed by the skilled ones unfortunately products had or good or choice of the people in countries where the products were supposed to be exported would be welcome or just accepted unwillingly for the slum dwellers. The old habit of selling yarn and gray cloth should be done away with and with that try to know the country products are to be exported, people whose likes and dislikes acquired, instead of how much India or China is facilitating their products exporters in those countries have self sufficient in their machinery that yields in best design dyes and chemicals to give products people like at first sight.
COMPROMISE ON WTO:
If leaves no doubt that some conscious people in some countries feel that the basic principle of WTO (World Trade Organisation) is based on will benefit rich and poor alike. However countries old trend or mind-set that welt to do people have the right to rule and dominate people from sub-consciousness. This has not been made clear and hence once in July 2006, a good opportunity got lost. All knew then and more so the man who behind the WTO that opportunity once lost hardly shows its face again.
Thus the most loving soul, WTO's Director General Pascal Lamy had but to leave under comma. But the next day on calls after call was head that a revival bid is made for the good of poor. But rich every time made even further clearer that it was turn of poor to compromise. It may sound somewhat strange but what else could be deduced from such words like Germany's which in whispers asked al the world to compromise.
What then was the hitch so far in flying the flag of WTO high, rather was sent to deathbed. It still is not out of death bed as next week's meeting after informal meeting of come 30 trade ministers on the WEF get together on January 24, will prove whether anything is left for cheers of WTO. The fast track authority to sign deals of incumbent George Walker Bush will go - five month hence. That will be followed by all the noises during 2008 to elect new president perhaps Hillary Clinton former first Lady and a very smart senator. But Democrats, she belongs to have made it pretty clear that such regional accords or two like things they will right were not in favour.
Things change - change in minister, anything can happen- so thanks for Germany for reminding element on death he taken care of-perhaps-it paid poor with rich dividends.
TAIL PIECE:
The ginners have been asked to supply dirt free lint so that it one day becomes a clean cotton culture. They claim it cost them money and their machinery. The PCGA chairman said Rs 5 for standardisation which will make them hard to car, as they are already paying various types of 27 taxes development in PCSI fibre testing Lab and human resources to train them as cotton classes and grading experts.
In fact he said ginners need patronisation of the public sector for replacing existing outdate system for production quality lint. Besides, others reminded that sector is being done so much. In the same view Pakistan Kissan Movement Sec. General Hanif Gujjar has urged PM to turn down demand of the textile industry regarding duty free import of cotton from India. Minfal stand was correct to stop imports through Wagah unless Pakistan supplies get exhausted of their stocks.
The PKM Chairman reminded in his words' The country has witnessed many mafias, hailing from different industries, including sugar, cement and now the spinners have turned new mafia to press the govt over undue demands". Some growers on a visit to Karachi said that they have been made special efforts and care. They said they have now been planning to stretch cotton production up to 15 million bales and if they wont gain why should take upon themselves additional burden of increasing cotton production, they asked.