Sowing of new crop has almost been completed in both main cotton producing provinces of Sindh and Punjab privately on area of about 3.25 million hectares while official figures are yet to be released by the Government of Pakistan.
Field reports indicate that academically arrivals of new crop cotton has started in ginning factories from early sown areas of Lower Sindh and Central Punjab but arrivals on regular basis are yet to start. One Punjab factory has ginned small amount of seed cotton to test its operation.
The resultant lint cotton contained lot of immature fibres and neps. One ginner of lower Sindh has recently sold new crop cotton at Rs 2,550 for delivery on 10th August. In view of dull market condition and low advice from New York, the ginners do not appear anxious to get new arrivals.
The recent wide spread rains in lowers Sindh and some areas of Punjab are reported to be quite beneficial for cotton plant development.
Monsoons have entered Pakistan and the problem of water shortage would be overcome. Recently, the textile sector received a setback when its demand for a Rs 50-billion subsidy was turned down by the State Bank Governor and the Prime Minister of Pakistan.
Monsoons in India are reportedly doing well with cotton crop and farmers feel encouraged to sow cotton in view of better yield and return in the last two seasons. The decision of the highest Indian court on largely reducing the royalty on Bt. Cottonseed has been welcome by the agriculture community. India's Private sector estimate total area under cotton in 2006-2007 around 8.85 million hectares and total production around 25.0 million bales of 170-Kg each. India has harvested two consecutive bumper crops around 23.0 million and hope to harvest a record high crop of 25 million bales.
However, much has to be seen and done for reaching the reliable production estimates. In 2005-2006, India produced total crop of 24.40 million bales of a 70-Kg each on 8.873 million hectares achieving average yield of Kg 467 per hectare.
Here is the balance sheet of Indian cotton in 2005-2006 season ;

===========================================
Opening stock       7.2       Million bales
Production
 (2005-2006
 season)           24.4         "         "
Imports             0.4         "         "
Total availability 32.0       Million bales
Total mill
 Consumption       20.0       Million bales
Non-Mill
 Consumption        1.5         "         "
Exports             3.3         "         "
Total Demand       24.8       Million bales
Closing stocks      7.2       Million bales
===========================================

In China, there have been very heavy rains in last week of June and first week of July months in Eastern china which have caused damage to crops on 1.34 million hectares, 10.86 million peoples were effected by floods, 14,000 houses collapsed.
Hard hit areas included 15 cities of Henan, Anhui and Jiangsu provinces. Estimated loss is placed at 5.3 billion Yuan (US $663 million). Chinese crop is estimated around 28.0 million bales of 480-lb in 2006-2007 season while its total consumption is estimated around 51.88 million bales.
Cotton crop in USA is reported to have recovered to over 21.0 million bales while is consumption is 5.5 million bales. In view of conducive weather conditions, Pakistan may harvest a bumper crop of 14.0 - 15.0 million local weight bales in next season.
Cotton prices during last two days of the week remained slack on lack of buying interest from local spinners on weak advices from New York and on TCP tender for sale of 42,000 bales to be opened early this week. Although, total unsold stocks with the ginners and TCP both are estimated around 250,000 bales but the sellers appear under some pressure.
Local spinners are reported to have booked enough amount of foreign cotton in last fortnight when world prices came down. Local lint prices would largely depend on the size of the ensuing cotton crop and effect of international prices. Like this retiring season, China is likely to keep world prices under its control as it has to import around 20.0 million bales of 480-lb each in 2006-2007 season. However, trade estimate world prices to work on the level of 60.