Domestic cotton prices from both Sindh and Punjab registered higher prices on Thursday in view of the relative shortage of higher grade of lint. Thus, ginned cotton prices reportedly rose by Rs 150 to Rs 200 per maund (37.32 Kgs). Consequently, the Karachi Cotton Association also increased the ex-gin price of grade three cotton on Thursday and raised it by Rs 100 to Rs 6100 per maund (37.32 Kgs) the price of good quality seed cotton (Kapas/Phutti) from Punjab is also said to have risen in the ready cotton by Rs 200 per 40 Kilogrammes.
US cotton prices were also said to be tight, while China is reported to have bought US futures cotton from 72.50 to 73 cents per pound. The value of the US dollar has also appreciated. Prices of cotton in India were also reported to be tight. These prices are generally deemed to be out of reach for the Pakistani spinners.
Both the prices of yarns and other textiles were not doing well and thus a sizeable section of the domestic spinners are not faring well. Several years have now elapsed since the viability of the spinners stands eroded. Higher cost of inputs in Pakistan compared to the regional competitors has made several spinning units, particularly the smaller ones, incompetitive and some have even said to have closed down.
On Thursday, the prices of seed cotton (Kapas/Phutti) from Sindh is reported to have ranged from Rs 2200 to Rs 3150 per 40 Kgs. A very wide difference in the price of seed cotton is noticeable between the higher and lower qualities. In the Punjab, seed cotton prices are reported to have ranged from Rs 2900 to Rs 3400 per 40 Kgs, according to the quality. Lint prices in Sindh are said to have ranged widely from Rs 5500 to Rs 6300 per maund (37.32 Kgs), according to the quality. In the Punjab, cotton prices are said to have ranged from Rs 6200 to Rs 6350 per maund (3732 Kgs), according to the quality.
Pakistan is projected to produce about 11.5 million bales (155 Kgs) ex-gin of cotton during the current cotton season (August 20156 / July 2017). Mills consumption during the current season is being estimated about 14.5 million bales. Domestic mills are expected to import about three million bales of cotton. Textile circles have reported that the production of course counts of yarns have increased domestically due to demand from China.
In ready cotton sales reported on Thursday, 3000 of cotton from Rohri and Salehput in Sindh both sold at Rs 6150 per maund (37.32 Kgs). In the Punjab, 400 bales from Bhakkar sold at Rs 6250 per maund. Furthermore, 2000 bales from Harunabad, Chistian and Fakirwali all sold from Rs 6250 to Rs 6300 per maund. Also 600 bales from Khanpur sold at Rs 6350 per maund in a tight market.
On the global economic and financial front, the election of Donald Trump as the 45th president of the United States is an extraordinary event which has not only shaken the political setup around the world but also promises to alter the economic structure built up over the past eight decades. Mostly, the expansion of global interaction and interconnection in trade dealings and exchange of goods and materials, and also the interchange cooperation in business, the field of finance and know-how pushed up global economic expansion to new heights.
With Donald Trump in the driving seat at the helm of the world's largest economy, all this may be changed or altered. Globalisation is being derided by Donald Trump as being awfully harmful to America. Similarly, several trade pacts such as those with Europe, South America and the Caribbean may be scrapped or altered drastically.
Trump also envisions several schemes whereby droves of immigrant workers, such as those from Mexico, would be ousted from America to provide work to the local citizens in the United States. Over the years it has been claimed that immigrants in America have provided the push and innovation to many an enterprise in the United States.
Such radical ideas and anti globalisation proposals may give rise to a backlash in other parts of the world. For instance, trade wars with the China could give rise to imposition of trade tariffs and manipulation of currencies. Likewise, president-elect Trump's threat to ban oil imports from Saudi Arabia could be counterproductive. Large exports of trade items from America to the Gulf countries could suffer seriously.
In other estimations, emerging markets like Brazil and Mexico are suffering from shock waves arising out of the election victory of Donald Trump. According to the British Broadcasting Corporation (BBC), the currencies of both Mexico and Brazil have taken a battering.
Besides the emerging markets, other countries are also fearful of the outcome of the several economic measures which were proposed during the election campaign of Donald Trump. For instance, Mr Trump may insist on the complete renegotiating of the North America Free Trade Agreement (NAFTA) linking US with Mexico and Canada, says the B.B.C. Such an event would disband the close economic ties which were developed by NAFTA. This would be an instance where America would fall into the fold of protectionism. As a result, a realignment of trade relations between different countries would become an imperative which could reshape economic and political relationships. The ramifications of Donald Trump's policies will indeed be universal including Europe, Asia and the Far East.
Thus fresh currency wars could be initiated whereby China could conceivably be accused of manipulating the Yuan. Anyhow, for the time being, the recent presidential elections have left the United States a divided nation where protestors in some American cities are decrying the election of Donald Trump as the next US president. There is also reported to be some disruption and dissention within the Republican Party on the issue of cabinet formation. Trump's relationship with the media are also reported to be tense. Thus a worrisome uncertainty has now entrapped the United States of America.
In the meantime, the world at large is still guessing at the possible outcome of Donald Trump's election as the president of the United States of America.
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