Ready cotton prices on the domestic market took a dip this week conceding anywhere from Rs 200 to Rs 300 per maund (37.32 Kgs). The turnover was reported to be moderate on Thursday as traders disclosed that most of the mills are well covered already having bought adequate quantities of cotton through imports earlier in the season. Only about 200,000 bales (155 Kgs) from the current season (August 2017/July 2018) remain unsold lying with the ginners.
Most of the good quality cotton from the current season (2017/2018) is said to have been sold out. Even though the domestic spinning industry is doing much better, there appears no shortfall as demand for cotton by the mills is not strong.
In the meantime, some initial but moderate quantities of cotton may start arriving by the middle of June 2018, but increased arrivals of new crop cotton (August 2018/July 2019) will only start on or after the 15th of July 2018.
Current rains in upper Punjab and some areas of Sindh will be helpful to the growth and development of the new crop cotton (2018/2019). Rains in northern areas are likely to augment the much-needed water supply to the new cotton crop. Thus additional supply of water is also expected to help the irrigation system which should henceforth see relief in the supply of water to the cotton fields for the standing crop.
On Thursday, cotton prices appeared to be facing some pressure as any protracted delay of the arrivals of the new crop is now not expected and cotton for the new crop may arrive earlier than expected previously.
Thus Sindh styles from the current crop (2017/2018) as well as lint from Punjab suffered a decline and both were said to have been priced lower from Rs,6200 to Rs 7600 per maund (37.32 Kgs), according to the quality.
In ready sales on Thursday, 2000 bales of cotton from Burewalla in Punjab are said to have been sold at Rs 6000 per maund (37.31 Kgs) on Thursday. On the other hand, 450 bales of cotton from Pir Mahal sold at Rs 6350 per maund, while 900 bales from Mian Channu are reported to have been sold at Rs 6550 per maund in a weak and sluggish market.
On the economic and financial front, the global trading system has already been torn apart since American President slapped import taxes on Chinese products like steel and aluminium. Now President Trump has thrown another bombshell by declaring that the United States will "exit" the nuclear agreement with Iran describing the decision of pulling out of the nuclear deal with Iran as a "withdrawal".
Most countries around the world, including the European partners of America have been stunned by this move and have openly "regretted" the United States decision to opt out from the Iranian Nuclear agreement. Thus France, Britain and Germany have regretted the American decision to exit from the Joint Comprehensive Plan of Action (JCPOA) as regrettable. It may be recalled that the P5+1 countries signatory to the Joint Plan of Action include the five permanent members of the United Nations, viz China, France, Russia, United Kingdom, United States and also Germany which last mentioned country is not permanent member of the United Nations. The reason for President Trump's pullout of the Iran nuclear deal has been given stating that "Iran did not disclose a past covert nuclear weapons program to the International Atomic Energy Agency (IAEA), which was required in the 2015 deal.
This withdrawal of U.S.A. from the Iran nuclear deal carries with it several politico-economic repercussions, many of which would be negative. To begin with, it has been reported by Reuters that the "Brent Crude rose to another 3-1/2 year high of Dollars 77.89 overnight amid fears of supply disruptions following President's withdrawal from the 2015 nuclear accord with Iran and ordered sanctions be re-imposed".
Last year President Trump declared that America will pull out of the Paris Agreement, the international accord that looks forward to decrease carbon emissions and keep the world's temperature below two degrees Celsius above pre-industrial levels. Nearly 170 countries are said to have ratified the Paris Agreement as the Climate Change accord is formally known.
Last month the International Monetary Fund (IMF) referred to the tug of war between America and China in which the two economic giants appear to be pulling the global economy apart "over the tariff show down" between them.
Till now, the initiative taken by President Trump pertaining to Climate Change, Tariff Wars and lately the proposal of America to pull out of the Nuclear Deal with Iran have luckily not impacted the American economy till now. However, now the "America First" mantra of President Trump appears to be showing serious concern amongst political, economic and business circles all over the globe.
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