The ginners quiet instance in view of the international rising cotton prices could not budge the spinners who refused to buy until sellers attitude softened on rates. The spot rate was put at last week's Rs 2650 level without upcountry expenses. The level continued unchanged until Saturday.
WORLD SCENARIO:
Cotton farmers in the US have been showing more concern to the growth and prices of other crops for determining the rate of cotton. Besides, they are eager now to absorb the Sino-US talks on economics matters. India has turned US competition in cotton exports though, India has exhausted surplus stock.
The opening day's July contract was up 0.78 cent to 50.54 and October up 1.10 to 53.80 cents a pound. The opening session sustained rising trend to see contract surge at a five-week high speculative and option related buying. Market operators commented India, which has turned a key rival to US cotton exporters is no longer as active with their cotton quotes turning normal. Meanwhile, trade said it will be looking at USDA crop progress report to see whether inclement weather is an obstruction to smooth plantings in Texas and Georgia prompting to a shift to other crops like soyabeans.
The contracts on Tuesday were subjected to dip on spec sales, leaving traders wonder how it could he after weeklong surge. The traders said the market would interestingly watch Sino-US economic talks in Washington, as Beiging is biggest consumer of US cotton.
On Wednesday speculator sales beat back track filer contracts. The market is eagerly monitoring development of crop in the US cotton belt like Texas and a withering dry spell plaguing the S. Eastern US. Export sales is another report awaited. The brokers were however not very much optimistic and exported lower sales than last week's.
On Thursday futures pushed higher owing to speculative buying which boosted market feeling that sustained gains were likely ahead. The players fear if any problem impacted the cotton plants. The weakly export sales produced no worth while impact on the market. Export sales were recorded at 407,500 RBS higher than previous week's and shipment was 395,500 RBs - also better than previous.
On Friday rising tempo was sustained on option related baying. The coming Monday session will be closed. However traders showed optimism about market. They were worried weather showed no change to hot/dry pattern will be negatively impacted. July contract was up 1.05 to 51-41, and October up 1.26 to 5450 cents a pound.
LOCAL MARKET:
Imports and more import of cotton has depressed local market trading as price showed static condition, though the ginners were in wait world rate will help in local activity. The spot rate has remained stuck up to Rs 2650. The growers seem to have been in two minds. Govt is asking them to sow cotton on more acreage while spinners and millers have been adamant to import low and better quality cotton.
In the post- violent day on Monday, market opened on Tuesday but trading remained lackluster. The expected FPCCI meeting to discuss cotton import was in the interest of consumer. The stress on imports of cotton of all types desired by the textile millers and spinners will have negative impact on the thinking of growers.
Who have always suffered and none came to their rescue when on occasions they had to burn or sell at throwaway prices. The world recognises Pak lint is good and slight care and investment could produce quality cotton acceptable to world users. But imported cotton is available at much lower prices than local sellers can afford and govt which claim to safeguard the interest of growers must take into consideration.
On Tuesday only 400 bales changed hands. The consumers wanted cotton at throwaway rate from ginners but supposedly they had left with small stock were holding back. The trading on Wednesday did not present any different scenario. The buyers were adamant as they known they had bulk cotton in the pipeline. That better acreage and production reported was also having negative impact.
But small pile up was great relief. The world cotton rising trend has changed and for few days it was expected declines are in the way. The cotton trading is showing and what is being discussed openly seem to have been telling ill about textile exports.
On Thursday lean business was market in hopes that lint prices aew likely to show softening. The rate is ranging between Rs 2500 and Rs 2550. The importers are in little trouble us world rate has also started leaping higher. They are likely to return to cotton market. The gingers, however, are keeping attitude unchanged. The textile exports should be in view which is dipping.
On Friday low activity continued as prices firmed, not liked by the consumer. However, recent rise in foreign stuffs must be inducing the cotton users to soften their instance. On lot was seen having changed hands.
On Saturday only a small deal was reported havin no effect on overall situation.
QUIET PREVAILS ON TEXTILE CITIES FRONT:
Training and genuine govt help with money to the textile sector is throwing exporters astray. Even location some virgin sector to rescue textile sector is welcome and will go in doing away with the complaints of exporters.
Graphic details are given regarding decline in exports of textile products during April keeping an eye on the performance and achievement is a must for achieving yet more, but looking money from banks or every sickly exchequer should be avoided. Ok, the govts in Pakistan face adverse condition if not for surrounded by money seekers hovering election ahead.
Not necessarily on disappointment that the static $5 billion yielding exports, govt announced to set up textile town and cities. Someone also hinted about a chemical and dyes city in Karachi but then such a condition cropped up that govt was being made to believe existing mills and exports are on the verge of collapse.
Govt officials have forgotten to mention textile towns or cities but have sang in chorus want package or mills and exports are to cease. So much has been in the press today about exporters' woes nothing is being spoken about textile cities, dyes and chemical cities and textile machinery plants. All these being claiming much more money on imports why can't produced locally.
Such deep silence is in the nook and corner of the country, which is meaningful. The chemicals and dyes importers line up every year to visits Eastern Europe, China, and India for ordering billion of worth of dyes and chemical. When these lines were written the special column for exports and imports data, published daily in BR, even today (May 23,2007) had tons of chemicals.
Agreed US offers its farmers billion and billion subsidy in a couple of ways but will you agree that tax payers call collectors if the tax payments is delayed. Once again a week Pakistan is surrounded by wide-varieties of obnoxious talks which Pakistani have wished they must end for better!
COTTON SEED SELLERS:
Are Cotton seed sellers diehard spurious or sub-standard sellers? Or they are just in the hand of those who are supposed to keep an eye on profiteers? The people closely linked to the trade are of the view. Positions are created and officers or men are posted to earn for their family as well as serve the department place honestly.
But is there anyone who ever feel satisfied with what they get for maintaining the family and maintain a respectable position in the well-known corrupt society. Thus such thinking is not new what has been ignored in an exemplary punishment to the cottonseed sellers, nay, but sub-standard and spurious drugs sell in connivance with anybody who is well-positioned.
Sources recalled such warning and polite advice has always been in the speeches of the new rulers or newly appointed officers who, sources said, enhances the "value". The implementation part is soon a forgotten matter rather than smooth and honest sales were a practice.
Unfortunately progressively economy going down the drain is never regretted by whoever comes to power by far or foul means. In fact new comers make thin strength to pull down the current rulers and scale up themselves to power. They have known their days are on the high to power. They have known their days on the high seat are not lasting. Someone else is always there yo watch their follies and counting down their stay as kings.
The above noble thought emerged in the first meeting of Cotton Crop Management Group (CCMG) held at CCRI, Multan as if there was no such institution in existence. The meeting revealed that 6.326 million across have been set apart for cotton growing in Punjab. Cotton so far has been down on 1.4 million acres up to May 19,2007. Many nice things also came up in the meeting probably with people who know little about cottonseed. DAP, fertiliser but will have to take care of the cotton crop, still five times more acres remain to be sown, then taken care of growth safely with thunder storm, showers and rains and viruses etc.
The govt. under pressure to offer mills a minimum of 15 million hale has to be on watch right from now so that millers don't have any ground to import million of bales of cotton, leaving locally produced cotton to rot.
BY THE YEAR END:
No, not the free trade agreement with the US by the end of 2007. But a deal in WTO being assured by the leading members by the year-end. The knowledgeable circles who play with development news like the chess master, give hearty laugh, yes, seems possible and in the words of the US, EU, India and Brazil. Out of 150 members so far, these four have been made the masters of not only their respective countries but the whole world.
But the work is stupendous and needs subtle understanding to save one from shrewdness of master-men. Twice hopeful expectations have come from the mouth of one or two people attending certain all-important meeting.
The wordings used after the meeting that all issues related to WTO had been discussed threadbare and the issue that has been the bottleneck - subsidies on agri products besides closely concerning the mentors. Services etc the news the have-nots hold dear never given in clear words whether raw materials will ever get the ripe deal.
What is that has not been allowing for the last six years keeping the majority of the poor in balance, and, what magic has come to hand that will and centuries old hunger, ill health and constant disappointment. Has the people stretching time from one year to another and now again the year and counted farmers death from suicide in India. The deaths from hunger is not occurring only in India but elsewhere also.
The fact is that fast track mandate has been stated time and again to go by July. If it is missed this July, acquiring from the legislators will not only be possible because of the change in the face of voters but the very ideas. So the trade musters be from the EU or the US. This issue has been left untouched. The delay has been making clear that the WTO is not going to be a few rich among millions and millions poor are there sitting on their fate.
Six years on mere sitting across the table sipping tea and discussing global warming has yielded nothing. What however is important that poor money is on the waste. The year-end is not far away particularly hopes after hopes washed away, in fact wait has been in centuries. The few months won't enthuse much.
GARMENTS, FABRICS' NEED:
Today it is more than clear govt has come to it that textile exports could be helpful in earning 10 times more than a pound of yarn has been adding to exports for decades. There are authorities still there and bulk of them engaged in textile trade, who could recall how they were told by manufacturers of value-added goods that stop unbridled exports of yarn as they needed more for ten times more forex than cotton yarn could ensure.
They would also try to convince the spinners and authorities that cheap cotton yarn exports made Pak exporters products un-competitive. But no body was to listen. There is no pointing out possible reason why the value- added products were every year rebuffed. Many will remember the late Dr Mahbubul Haq's cartoon published at the behest of spinners for opposing unbridled exports of cotton. Should not the spinners assess and reassess the tough time they are in? Their elite and premier organisation.
Which helped in yester years have with louder voice reaching Islamabad, is quiet after probably obvious gains they have been offered by relevant quarters. Now is the time all should for a moment think as to what has brought them to such a plight? Had they for a moment thought about supplying yarn to people who nearly bagged from them and only the surplus to export. Year after year yarn, the highest forex earner could only bring more or less $5 billion.
Even late Mahbubul Haq could not rekindle the gains from exports of value-added goods. Some enthusiast those days when South Korea was earning right and left from textile exports without a bales of cotton production, had asked Koreans the cause of overnight leap in textile exports-pat had come the answer the advice of Mahbubul Haq and honest practice. The advice, beside local well-wishers like Mahbubul Haq, foreign invitees to workshops, conferences and meetings would stress with all the strength under their command and Pakistanis should switch over to better forex earnings as they (Pakistan) were fortunate to have fine kind cotton within country.
But the rulers and those who were convinced to make harvest when the sun was shining overhead were apparently more than satisfied with $5 billion. S Korea, China, India and others were on success path and every year brought textile exports saw rising progressively.
Until this day when a big boom was heard in neighbouring countries after WTO advent, and, quite contrary to the development elsewhere, Pakistanis were reporting to the authorities progressive decline in textile exports. As the fact dances before the eyes of people, spinners left alone. And the central bank is kind enough to have allowed bank loans without personal guarantees of directors of public and private limited companies.
TAIL PIECE:
For decades manufacturing and exporting was manned by raw students from schools and colleges. From higher studies men were inside country untouchables who dumped themselves in some foreign countries at higher salaries and respect. This unfortunate country rejected hundreds of experts and PhDs for more money that was their value. The raw men manning the govt could never realise how valuable it was to keep back PhDs and engineers and technicians. The result is to be seen now, Govt.
plans, Thank God, 1500 PhDs annually. Unfortunate again, cant those serving well in foreign lands, are offered respect and money to lead this country to progress and prosperity? Certainly not possible, they will cost govt money, govt has earned since 1947. Thus the govt under pressure has one by one taking up training of labour class now and planning after decades to produce 1500 PHDs annually.
Any body can count the loss manufacturing firms, business and technical fields have suffered. The theme borrowed been adopted to prevent the so-called for decades drain including favourable working conditions and facilities as well as highly competitive salaries needed courage and resources which this country perhaps don't have, for govt exchequer remains hungry and thirsty year after year.
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