The lingering volatility in countrys political scenario had naturally hit trading in cotton, which lacked normal selling and even buying when spot rate had to be slashed by Rs 50 to Rs 3150. Phutti rate was stuck up at Rs 1500/1600 and asking prices hit low of Rs 3050.
After the restoration of judges situation appears taking positive turn. Spot rate was raised to Rs 3225 and prices in ready business rose to Rs 3300, on last day of the week ie March 21,2009.
WORLD SCENARIO:
The rising stocks and modest investor and consumer buying with hope that end-month planting report may usher in some desirable direction pushed futures higher initially during the week. On the opening day positive development edged futures higher. But the trend could bot sustain as futures, which suffered across the board losses on Tuesday. Anyway on Wednesday futures failed to maintain gains and submitted politely as investor engaged in liquidation weighting on rising trend.
Thank God, however, the modest consumer lifting saved contracts from bigger loss. The players assumed that the selling was connected to outside markets. Cotton disappointed bulls when it ignored strength in the stock market and an impressive strong performance by CRB commodity index. They however foresaw weekly export sales and shipments may not prove inspiring on Thursday. The annual planting report at the end of March seemingly is hoped to offer some inspirational development.
On Thursday futures were put in reveres gear on investor buying together with news about dollar weakness and commodity market reports showing surge. However, the anxiously awaited weekly export sales and shipments both showing further down versus previous weeks. However, players were enthused on reports millers have reported in US and elsewhere into action. Final wait will be over the sowing reports by March and, owing to difference between NCC figurs and USDAs. The changing world scenario in respect of early end to deep recession is morale boosting.
On Friday New York cotton futures finished higher on follow-through investment fund buying, and the momentum from its advance should spill over into next week it was speculated. The key May cotton contract rose 1.21 cents to end at 44.08 cents per lb, trading from 42.95 to 44.34 cents. July added 1.18 cents to conclude at 44.93 cents. Volume traded in the May contract was at 8,327 lots at 2:43 pm EDT (1843 GMT). Volume traded on Thursday reached 14,774 contracts, from the previous tally of 15,021 lots, exchange data showed. Open interest in the cotton market was at 133,390 lots as of March 19, from the prior tally of 130,490 lots.
LOCAL TRADING:
The growers and cotton consumers must have felt relaxed over easing of tension on political front hoping trading may return to normalcy. Last couples of weeks have seen untoward situation in view of manufacturing receiving setback on various counts including transportation problem and high cost of doing business. However, when the market opened, expected solution of stagnated issues, near normalcy was all around.
However, the spot rate was unchanged at Rs 3200 and phutti prices in Punjab and Sindh ruled between Rs 1500 and Rs 1600 a solo deal was marked struck at Rs 3100 showing apprehensive sellers and buyers were still buying time to see normal sales and buying activity. On the second day the scenario change was no where as fear hovered owing to uncertainties. The spot rate came under pressure and was dragged down by Rs 50 to Rs 3150, though phutti prices proved resilient. Only deal materialised at Rs 3050, while providing no clue how the next day will behave. The local condition was apparent while the world scenario was only slightly forecast on the right track.
On Wednesday, as expected, end of uncertainties on political front reflected in improved business. Nearly 3000 bales of cotton changed hands in prices noted between Rs 3100 and 3250. The spot rate and phutti prices depicted no change. Market sources hoped improved scenario to better in days to come, which will encourage cotton sellers to over power, their hitch and add in cotton values.
On Thursday improved sales were market injecting feeling of better prospect ahead. The authorities are serious to provide available resources for boosting exports with edge over other competitors. Phutti rules at Rs 1500/1600 both in Punjab and Sindh, spot unchanged at Rs 3150 and buying in ready at Rs 3000 to Rs 3225. The market operators said they had keener view of developments and plan things in the best interest of economy and country.
On Friday the official spot rate was raised by Rs 75 to Rs 3225. The phutti prices in both the Punjab and Sindh were at Rs 1500-1600. In the ready business rates moved with slight gain between Rs 3100 and Rs 3300, 400 bales of cotton from Sadiqabad sold at Rs 3150, 600 bales from Nawabshah at Rs 3100, 200 bales from Mirpurkhas at Rs 3175, 2000 bales from Khanpur at Rs3300, 400 bales from Khanpur at Rs 3225, same figure from Sadiquabad at the same rate and equal figure from same station at Rs 3190, they said.
On Saturday rates firmed up on the cotton market on Saturday following the active mills demand. The official spot rate was intact at Rs 3225. The phutti prices in both the Punjab and Sindh were at Rs 1500-1600. In the ready business, rates moved between Rs 3125 and Rs 3300, they added. The deals reported were: 200 bales of cotton from Sadiqabad sold at Rs 3150, 400 bales from Daur at Rs 3125, 600 bales from Rahim Yar Khan at Rs 3300 and 1000 bales from same station at Rs 3350 (deferred payment).
ENERGY AUDIT IN TEXTILE:
Where there is will, there is a way - is applicable to all irrespective of country he lives and Pakistan is not an exception. But why life of people, businessmen and exporters are so miserable all here know but no one knows how to make life honourable and comfortable and competitive. He looks for somebody else to do it, more pronouncedly businessmen and exporters cannot do most exports without seeking favours from authorities. How far they are obliged depends on the exchequer, which depends on taxes deducted from the salaries of only few lakhs out of 16 million Pakistanis.
The little known National Productivity Organisation (NPO) plans to appoint consultants to carryout energy audit in the most distressed textile sector under its project titled "Every efficiency for textile sector". According to benchmark figures 10-15 percent energy saving potential is envisaged in spinning 20/25 percent in processing sector.
The spokesman added that NPO strongly feels that expanding and replicating the best practices will greatly help industries in attaining energy efficiency particularly in textile sector. From time to scores of cures for the chronically ill textile sector have been prescribed without sectors showing positive signs. After 60 years for treatment Pakistanis have to buy services of foreign experts, sources reminded.
TEXTILE, GARMENT CITY:
When textile cities and garment enclaves were being perceived, the dreamers had perhaps not seen opposition of the extent at present. Over one year or like time period they had been talked but planners were hardly to get the shock promised finances for all quarters, including governments sheer wont be coming.
Right then the world would be inching towards recession may not have they imagined. The question arises why disappoint would be at the doorstep of such products no one on this planet go for a day without. The demand may shrink, cost of doing business may rise, but that certainly hits all exporters world over.
The shouts are heard every where but not the size in Pakistan, why is it that such a conditions emerge, may, stays in this country. This country is basically agricultural country why is that cotton, wheat, sugar are imported. If authorities cannot probe the real fact - to find some solutions. This countrys foundation has been continuing while those living in sky-high palaces have ignored. The fact is that this country needs as few a things to be imported as possible. The textile products are hit by high cost of doing business because every imaginable stuff needed to produce is imported. From textile machinery, dyes, chemicals to cotton.
Have authorities ever calculated the money drained out on these scores. Making no investment on setting up on textile machinery, dyes and chemical plants for over 60 years, well acknowledge they are needed all the year round, shows imports are doubly beneficial. If there would be so much noise over textile exports, money would have been forthcoming, so noise make some sense. Why is it according reports, other than textile sectors, other exporting sectors have made record exports.?
JOIN TDAP IN HEIMTEXTILE FRANKFURT:
HEIMTEXTILE held annually in Frankfurt, Germany is great event where thousands from different countries travel all the way to display their quite obviously best of make and carry heavy loads of orders, Pakistani textile manufacturers are awre of this annual feat, more particularly the bed-linen makers and exporters until very lately would not fail to earn highest forex. The ugly incident of imposition of anti-dumping duty by the EU some couple of year back perhaps 2004. Fortunately the heart-rending days when bed-linen exports would have given strong support to ever thinning economy have elapsed.
The EU has lifted the duty and this advertisement will make them jump and prompt them to tighten belt to snatch back all the lost forex during last four years or like period.
The reaction is expected by their application along with required documents addressed to Trade Development Authority of Pakistan (TDAP), Block A, 3rd floor and Trade Centre Shahra-e-Faisal, Karachi. It is no use repeating the Heimtextile has been the biggest international trade fair for home and contract textile for a long time. The advertisement speaks about last event when over 2800 exhibitors from 65 countries presented their products to over 86,000 world trade visitors.
The efforts put in by growing TDAP are praise worthy and exporters must co-ordinate and cooperate with it for maximum gainful exercises in days to come. The time is in hand up to January 2010. The products for exhibition as specified are terry goods, towels, bathrobes, bed-linen, mattresses, bedrooms textiles, bathroom textiles, table linen, furniture fabrics, upholstery fabrics, upholstery leather, decorative fabrics, curtains and home accessories. The last date for application was given April 15, 2009. It is hoped high cost of doing business will affect, but only reasonably. Whether R&D dues which is considered important for making products competitive has been cleared or otherwise?.
WHERE EXPORTS GOING TO?
There is an old saying - shown on TV channels also as talks of like manner - chick, chick - is not good ---. The exports had for some months been subject to wide verities of guess, work, speculating bad to worse and only authorities were end hope to take exports out of moruss. But the event of one year brought to fore even worse - for the country and thinning exports.
The global communities are holding meetings and conferences aimed at arresting the spreading shadow of recession and likely melt-down fortunately this country was one of the last hit by global recession, but exports had been showing signs of going down and no way out was seen round the corner. The slight green signal was lurking from the long drawn partner in trade and commerce - the European Union - feared to lengthened anti-dumping duty, happily proved wrong. The other day flashing green signal was received the EU had done away with anti-dumping duty. In the rigmarole created by row lingering for months, likely to melt away soon had piled up worries.
The world trade organisation (WTO) racing against time to strike a deal to give respite from protectionism to "suffering down-trodden world wide has failed to see down who knows the fear of the impending bad days was in the background. The organisation is still soundly felt both the rich and poor country long hungrily to clinch a deal. The last time top notchers in the WTO were expecting around the end of the outgoing 2008. Voice a deal by 2009 end or.
How things will proceed or will be somewhat clearer from G-20 finance ministers meeting, which in loud tone declared to take "whatever action was necessary." Heartening to note participants playing down division between US and Europe." But the hide and seek and talking irrelevant things in Pakistan such as country being exploited by political opportunities is causing "exports, import activities shrink alarmingly."
Comments
Comments are closed.