Cotton market remained tight on Thursday mainly on concern of the spinners that quality of lint may go down as and how the season progresses. Thus the fear of any decrease in quality in the coming supply of domestic cotton for the remainder of the season (2017/2018) is instigating the domestic spinners to lift as much good cotton as they possibly can.
Thus lint prices in the domestic ready cotton continue to remain tight. Lower grade of cottons are still available in the domestic market at larger discounts. Even though the domestic mills have bought a much larger amount of higher grade of cotton compared to the same time during the previous season (2016/2017), the lower grades are still available in the local market at larger discounts. Thus the cotton chain during the current season is fully operative and functioning speedily.
The cotton arrivals pertaining to the current crop (2017/2018) are very satisfactory. The cotton crop assessment committee (CCAC) composed of senior government officials and the stakeholders like the growers, ginners, spinners and exporters have assessed the current season's ( 2017/2018) output at 12.5 million bales (170 Kgs).
Textile mills are reported to be doing quite well now and the larger cotton crop in Pakistan compared to the previous couple years is reportedly providing good returns to the growers, ginners, spinners and also the exporters. Cotton traders as thus happy compared to the previous couple of seasons. The exporters are also said to be searching for good quality of cotton in the market.
On Thursday, seed cotton (Kapas/Phutti) prices in Sindh are said to have ranged from Rs 2700 to Rs 3100 per 40 Kgs, while in the Punjab they reportedly ranged from Rs 2900 to Rs 3250 per 40 Ksg, according to the quality. In Sindh, the prices of lint are said to have ranged from Rs 5800 to Rs 6550 per maund (37.32 Kgs) on Thursday, according to the quality. In the Punjab, lint prices reportedly ranged from Rs 6250 to Rs 6500 per maund in a tight market. In Sindh, only cotton from Upper Sindh is said to be of high quality which commands a premium.
On Thursday, 400 bales of cotton from Yazman Mandi in Punjab is said to have sold at Rs 6400 per maund (37.32 Kgs), while 200 bales from Shujabad reportedly sold at Rs 6500 per maund. Thus the day ended on a high note on Thursday. On the global and economic and financial front, several leading and even smaller economies have been showing higher performance. However, there are difficulties galore so that several economists and observers feel that quite a few uncertainties remain so that the global economy could start to flounder any time. Therefore, we must consider both the positive and the negative aspects of the global economy which presently obtain side by side.
In politics, some observers continue to point out the uncertainties which abound in President Donald Trump's style of governing America. The rather high number of cabinet members who have left the Trump cabinet or have been replaced is unparalleled. Therefore, the volatility which rules the White House can create many hurdles in the smooth running of the White House. For instance, two of Trump's aides are being charged presently with issues relating to the Russian probe as the Russian probe gathers speed.
Then there is climate change policy to withdraw the American membership to the accord, also called the Paris climate agreement adopted in May, 1992 which then entered into force on 21 March, 1994. The United Nations has warned that the concentration of carbon dioxide in the atmosphere has reached a new high level that needs urgent action to counter the dangerous gases which have poisoned the atmosphere much to inflict serious detriment to humanity at large.
Another global flashpoint which could seriously disturb the economic stability of the European Union, and indeed the global political stability, is the recent referendum held in Catalonia proposing independence from Spain. For Spain itself, it is the biggest crisis in decades. However, the Spanish courts have declared it illegal. Nevertheless, this event could spread to other parts of Europe and elsewhere in the world. In the meantime, direct rule has been imposed by Spain in Catalonia on Friday.
In other negative news, an Uzbek truck driver allegedly killed eight persons last Tuesday where a note was found near the truck claiming that the attack was made at the behest of ISIS. Eleven people were also injured. The attacker, Sayfullo Saipove, drove down a busy bicycle path near the World Trade Centre in Manhattan, New York City. Additionally, three people died after a shooting reported at a Walmart in suburban Colorado. Police said that Scot Oster, 47, "nonchalantly" waded into a store and opened fire on Wednesday night. Such incidents in Europe, America and elsewhere will increasingly threaten social peace leading to serious disruption of business functioning.
Furthermore, there are continued bombings in the Middle East, Afghanistan, India, Pakistan and elsewhere. Added to these shootouts, murders and bombings is the related refugee problem in many areas around the world. More recently, the Rohingyas being thrust out of Myanmar to Bangladesh is easily calamitous. Then there is the case of inequality of incomes in U.S.A., the U.K., China, Russia, the Middle East and elsewhere which could lead to a global economic catastrophe.
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