Transportation problem has dipped cotton buying activity but ginners relaxed attitude towards asking prices invited owners of truck to lift and sustain luster. The spot rate was dropped down by Rs 25 to Rs 2825 right during week opening and until closure of the week on Friday.
However, on the opening day December fell 0.79 cent to 62.43 and March shed 0.65 cent to 66.21 cents. On Tuesday China was expected to enter market which is said to have been eyeing also to import from India. The changes being made in some countries and meaningful calls for striking a WTO deal before year end are making the top ones wary as developing countries have started showing restiveness.
However, despite upheavals in acreage cut and influences of grain, cotton is being nurtured firmly. Analysts were looking at occasional surge that had been caused by rally in grain prices. The operators, however, were waiting for USDA report likely on Friday to a slight upward production of cotton from last month's 17.81 million to 18 million bales.
On Thursday futures were marked down obviously because debacle in China order, primarily due to long holiday and also because considerable setback in cotton production has caused upset in China. The Chinese are taking time to assess the size of damage and then to place import orders. The US cotton markets operators have been under transition plausibly due to WTO that preaches global trading on party basis. Sizeable acreage has been deleted on mzde-up ground that grain prices are paying handsomely as compared to cotton. The week saw frequent colour change in cotton trading.
Anyway, on Friday futures on the last day of week's trading rose modestly though USAD report vibrated bearish as volatile grain prices boosted cotton on buying by speculative operators bothered to draw inspiration from export sales, monthly demand and supply prospects. Both dampened the warmth yhe players were deriving from China show of putting orders. China is upset at possible loss in production due to cotton srop had. Besides the long vacation that is awaited in America. Worry of India that will supplement China's short fall. The closing figure for December was up 0.14 cent to 63.87 cents and March up 0.24 to 67.88 cents a pound
The sellers bowed to the buyers' pressure to act/cut in spot rate by Rs 25 to Rs 2825. The prescription worked as the millers owing trucks found cotton at reduced rate, though Eid-ul-Fitr celebration ahead had watered lifting down to more or less same quantity seen on a day earlier.
A solo deal from Khanewal fetched Rs 2900 as most cotton was sold around the spot rate. Phutti from Sindh is in demand for its quality as Punjab Phutti was effectively damaged by the mealy-bug that has also caused lower production.
Meanwhile market operators were talking rather loudly that millers and exporters of yarn and textile now need a minimum of 15 million bales. However in the second breath they also pronounced that local cotton must be given preference over the uncalled for imports to encourage growers and ginners to target the hinted 15 million bales.
On Wednesday Eid holidays just a couple of days away were bolding buying activity hostage. But consumers of cotton had not been entirely restricting, particularly mill owners with same way out to carry cotton from markets to mill godown were laying hands on offered cotton bales. The exception was day following Shab-e-Qadra where dealers were planning coming Eid celebration.
On Thursday modest lifting was marked, particularly by-transport owning operators. The cotton consumers are in a fix. The world trend in cotton production and prices is ruling tricky. Nearly 7000 bales changed hands at prices ranging between Rs 2825 and Rs 2850 and spot rate remaining put at Rs 2825.
On Friday transportation problem and holiday's ahead dampened the buying spree lately. The trading is likely to pick up now next Wednesday. Nearly 6000 bales of cotton were lifted at price range of Rs 2825 and Rs 2875, with spot put at Rs 2825.
The government in Pakistan does not stay or one policy hardly lasts two to three years. So the playing foul with is hell easy. The resistance was evident but election process came in between and seems government found too much threatened. Besides packages, bank facilities and even refinance facilities have been extended by the SBP.
All have realised and intensely felt that SBP did this under intense pressure. The SBP Governor right since her day one in SBP had been looking refinance uniquely facilitated in Pakistan. She had been trying to let all concerned know that the neighbouring country often quoted by encouraged exporters have no time to knock at the minister or official for seeking one or the other facilities. But disappointed governor continued to shape monetary policy in a way to restrict inflation rising beyond so that part of reform reach to poor.
The governor had taken a move to drop long term financing of export oriented project (LTF-EOP) from June 30, 2007. As a matter of fact the governor earlier had clearly stated that exporters were not utilising LTF-EOP facility and therefore she rightly considered it to drop.
But elections have perhaps come in between according sources, who added that SBP governor who had taken a right move was over shadowed quite naturally once again.
Sources refreshed their oft-repeated question: should not somebody encourage build textile machinery plant so that imports could be avoided. And, why vision gets tried to see units built for production of dyes and chemicals? What has been practised is import machinery and declare mills non operative after some months or years.
If suggestions are unworthy, well, exporters or authorities must come out with an answer. Need too huge investment is no reason to keep textile machinery plant or mills producing dyes and chemical away.
The agricultural products should have made the country self-sufficient, prosperous and happy. Cotton has edge over other two or more products, as it somehow earns decidedly highest foreign exchange singly. Wheat and sugarcane (sugar) are produced surplus but soon government has to import.
The lint has constantly been on increase from few lakh bales to around 10 million bales. But the consumers show only disparagement that production is much less than country needs. If quantity is not really lower quality surfaces to discredit growers.
Since cotton production hinges or rains, it also suffers loss on that count. But how much really is no concern of anybody. The result is that it is pronounced whimsically by those who have stakes in one or the other ways, what the knowledgeable sources have been crying hoax.
Since government body was created that it should take full responsibility to keep tracing down ups and down caused by rains, pest, viral attacks and the size of the damages.
If the damages were low or high should also be noted prominently. The most of growers apparently are not well aware what drugs and how much should be applied.
Cotton Crop Committee said to be government's but it hardly supplies understandably its finding, while pilfering the points released one or the other interested quarters. The fortnightly reports released by PCGA are only a routine matter and get changed at times depending on the inclemency in whether.
The stakeholders will have to reach certain understanding to eliminate risk by one or the other. Calling for grow more cotton the authorities are on the forefront, but lifting cotton in a way to force the growers/ginners to remain under pressure to slash prices suit the whims of buyers. The consumers necessarily have to import quality cotton available with the ginners should at all cost be avoided which today is avoided wilfully?
Gradually and disappointingly now the big brothers have started pointing fingers at such countries who have waited and waited even such Doha Round in 2001 but an end has not been around the channel. When WTO was brought to light by sponsors and had been sending a wave of rejoicing through the poor's veins that ultimately froze.
Da lebued Brussdels report on October 5, optimistically: a long delayed global free trade deal can still be done- but the US negotiator stopped here to mention some name who are thought to be responsible for the slow growing process. The two of the three names were just showing signs of progress, but were hardly out of woods - Brazil and China, the third name Japan in poor country which will never let the poor members of the WOT.
Japan is not involved in competing with world powers in making deadliest bombs and missiles and such thing. One bomb dropped on Hiroshima was enough to teach it lesson how to be peaceful and rich to help the needy. It has been doing its bit. But what knowledgeable circles observed on the issue being discussed that Japan would never lag behind if the richer people will come with enough fund or sacrifice.
But the bigger brothers have been proving that they are the judges who impart justice but 140 WTO members don't subscribe to the view. The US and the EU had set apart certain contribution, which the two had pronounced not enough. The rest of 140 members were there not to even speak.
The other day, seemingly the EU's top official broke silence saying the WTO could be a realty by 2008 - though end 2007 had been for sure by all but countries who are expecting even today for some slice, who are committing suicide for paying their dues against buying seeds and pesticides.
How shamelessly some people want even the God gifted raw material to hungry people while adroitly keeping back technologies, sources said adding that keep back your better senses to turn philanthropists from actual investors.
Globalised rules and system has gradually been introduced which baffles as to why, when top negotiators view now or issues may linger on for years.
The textile sector is decidedly the maximum contributor to exchequer, maximum employer of people but needs to see how much it has reinvested or financed in making what proverbially said from needle to engine. How will engine move if it is not fed with water, coal and fabricates.
Thus mills, initially somehow given yarn making machinery during the time of Zia that very slowly encouraged to set up textile mills. Ever since the noise created was that cotton yarn was exported without bothering the needs of emerging humble exporters of ready-made garments, bedwear, towel hosiery, socks etc which bring dollar while yarn exports bring cents. Besides yarn exports create tough competition for the Pak made value-added goods. But there was no one in Islamabad to hear manufacturers voice.
The sources rightly said in those days the loudest voice alone was responded positively. Today towel exports fell by 36.27 percent during August 2007. Besides, other odds they were badly hit by cotton's prices. What the sources had to say about their helplessness was that they have always had one or the other problem but have survived.
They must struggle keeping in view the condition of the country that can't be dubbed as stable. They must continue to vision and fight odds. Government seems to have visualised and initiated a fund shared by federal government and the private sector. The fund will help needy who today bank on banks, financial institutions and government.
Neighbour India rising to challenge China. Rightly now China is the favourite choice for outstanding manufacturing while India is preferred for information technology, finance and customers services.
China's current share of the world's manufacturing export is more than eight percent while India stand at just under one percent. These two are leading countries where Pak friend America has stake in billion dollar in investment and offered n-technology that will take India to a position to match China at least as Americans do perceive.
There is no need to mention how Pakistan was rebuffed when called for the facility US delivered to India. This country is always quoting how Indian government and how much in pouring into exports. But still more experts showering praises on India, see that to match China or beat that country needs to develop remarkable infrastructure.
Pot-holed roads, dilapidated ports, shabby airports and erratic power are regularly cited as obstacle and hence they saw even more "substantial investment" need to be made but they are quiet on as to who will?