Ready cotton prices spiked up in the domestic market at mid-week following the global trend which tightened at most origins. Presumptions that China would buy cotton following the Lunar holidays, speculators holding long positions and many spinners around the world holding on-call positions on many of their unfixed purchases pushed up cotton prices beyond 77 cents per pound for No.2 cotton contract on the ICE futures market for the May 2017 cotton.
Traders said on Thursday that decrease in the value of the American dollar also tightened cotton prices. Increase in the import duty on fine counts of yarns has helped the spinners in Faisalabad who spin higher counts of yarn locally. According to one report, the price of Shankar 6 type of cotton has gone up by Rs 500 per Candy and is now priced at Rs 42,400 per Candy.
On Thursday, seed cotton (Kapas/Phutti) prices also moved up and high-end Punjab seed cotton has reached the highest level of this season (August 2016/July 2017). Thus on Thursday, seed cotton prices in Sindh are said to have ranged from Rs 3100 to Rs 3350 per 40 Kgs, according to the quality. In the Punjab, seed cotton prices reportedly ranged from Rs 3200 to Rs 3850 per 40 Kgs in a tight market. The recently announced Textile Package has also helped the textile industry in its performance.
The lint prices in Sindh were said to have ranged from Rs 6000 to Rs 7000 per maund (37.32 Kgs), according to the quality. In the Punjab, lint prices reportedly ranged from Rs 6400 to Rs 7000 per maund. The current cotton season (2016/2017) is likely to produce 10.08 million bales (155 Kgs) on an ex-gin basis. Due to shortage of cotton, demand for higher grades of lint has increased.
In ready sales on Thursday, 400 bales of cotton from Mianwali were said to have been sold at Rs 6500 per maund (37.32 Kgs), while another 400 bales also from Mianwali sold at Rs 7100 per maund, but on credit. Furthermore, 3434 bales of cotton from Muridwala in Faisalabad district of Punjab reportedly sold at Rs 7300 per maund but on credit basis.
Sowing of new crop cotton (August 2017/July 2018) in Sindh may start in February 2017. But in Punjab new crop cotton will not be planted before the middle of April 2017. There are reports that due to recent gains made by the growers, there will be an increase in the planting of cotton for the next season.
On the global economic and financial front, the induction of Donald Trump on 20th January 2017 as the new president of the United States following his election on the eighth of November 2016 did signify that a massive political and socio-economic change will engulf America. True to his campaign promises, Donald Trump lost no time to start implementing his political programme instantaneously. Moreover, it now appears that Trump's agenda for making the series of economic and political changes may take some time on several of the issues he had mentioned earlier in his presidential campaign.
Regarding the ban on citizens of seven Muslim countries from entering America, namely Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen through an executive order seems to be harming numerous individuals who are not citizens of the notified countries but who interact with those citizens on a large scale for their business trips, social interactions and other legitimate duties. Moreover, "extreme vetting" of people from other than the listed countries where terrorism is rampant also fall within the category of "terrorists" so-called.
The result of the proposed clause of "extreme vetting" would include legitimate students, technologists, traders, bona fide friends and family members who would be unjustly precluded from entering America causing a large economic damage to American business, travel, hotel, communication and educational industry. Such a move is likely to hurt business in America on a major scale and likely to be counterproductive. It is totally true that in the first instance it is the vast majority of immigrants who have built America to its greatness.
A major issue regarding ban on visitors to America en block could give rise to related antagonism and bring about counterproductive measures and possibly an undesirable retaliation from the bona fide affectees. Such a worry for counter-retaliation should be taken seriously as many businesses may be uprooted globally.
Thus a blanket ban on travel by citizens of several countries around the world, if and when such a scheme is expanded, would tantamount to a self-inflicted wound and may invite a global backlash. As we have learnt some centuries ago. "No man is an island entire of itself ever man is a piece of the Continent, a part of the main".
Views have also been expressed that besides curtailing business activity, such blanket bans on travel to the United States are being opposed by American businessman who have reacted negatively on this issue. Some judges in America are also said to have criticised several provisions of the travel ban imposed by the president.
The fear is that some of the issues regarding the new world-view being propounded by president Trump are alienating America's allies who reportedly believe that such travel bans are discriminatory which have left tens of thousands of immigrants around the world in a limbo who have been unnecessarily effected.
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