The sellers' firm hand over cotton trading has finally weakened as the week ended on October 22, 2011 and buyers feeling at ease with the trend and expeditions about arrival of the seedcotton. KCA official spot rate was down by Rs 350 compared with the last week closing at Rs 5900.
WORLD SCENARIO
Cotton futures are constantly on the downside and close watches to progress without any feeling express cotton rate will slip, matching its value before March last. Demand for cotton is by and large shrinking following the spectre of mind-boggling ever depressing world economy European and American including, beginning with Pakistan latest seedcotton arrival pace has been happily much swifter and prices coming under pressure-prediction is rife imports will be not as honourable as was considered - perhaps much for the interested quarters.
India remains in strong position looking for import orders - the prices dwarfed though - China has right at the moment mopping up stocks with it growers. China primarily wants to encourage growers to go for more in coming season and to save foreign exchange over buying from abroad. American hit doubly by drought and deluge is not enthusiastic about exports. The players are keeping a watchful eye on the economies who feed the poor and emerging countries.
On Monday the NY cotton futures finished sharply lower on spread-inspired investor liquidation and the market could probe the lower end of its trading band in the days ahead. The key December cotton contract on ICE Futures US lost 1.58 cents to end at $1.0036 per lb, trading from 99.89 cents to $1.0248. The market has traded in a range from 98 cents to $1.04 for more than three weeks. Total volume traded on Monday hit more than 17,800 lots, over a third above the 30-day norm, preliminary Thomson Reuters data showed.
On Tuesday the NY cotton futures settled marginally easier in mostly spread trade, as the market was content to stay in a narrow trading band. The key December cotton contract on ICE Futures US slipped 0.18 cent to end at $1.0018 per lb, trading from 99.61 cents to $1.0082. The market has traded in a band from 98 cents to $1.04 for 3-1/2 weeks. Total volume traded on Tuesday hit over 8,500 lots, more than a third under the 30-day norm, preliminary Thomson Reuters data showed.
On Wednesday cotton futures finished marginally lower on sales by small speculators in a session featuring largely spread trade, as players kept a cautious eye on euro zone debt problems. The key December cotton contract on ICE Futures US lost 0.46 cent to end at 99.72 cents per lb, trading from 99.60 cents to $1.0142. The market has traded in a band from 98 cents to $1.04 for nearly four weeks. Total volume traded on Wednesday hit over 16,800 lots, more than a third above the 30-day norm, preliminary Thomson Reuters data showed. The December contract got down to just under Monday's low at 99.61 cents where it held and then gradually worked its way back toward the psychological $1 a lb level.
On Thursday the NY cotton futures settled at a 14-month low on investor liquidation as nagging worries about the euro zone debt crisis and weak fiber demand pushed the market below a key support level. The December cotton contract on ICE Futures US dropped 2.86 cents or by almost 3 percent to end at 96.86 cents per lb, trading from 96.78 cents to $1.0004. It was the first time in almost four weeks that the market broke a trading band that had confined December in a range from 98 cents to $1.04. It is the lowest settlement for the spot cotton contract since September 2010, according to Thomson Reuters data. Total volume traded on Thursday hit over 19,600 lots, more than 40 percent above the 30-day norm, preliminary Thomson Reuters data showed.
On Friday, the NY cotton futures finished higher on investor buying as the market stabilised after falling to a 14-month low the previous session. The key December cotton contract on ICE Futures US rose 0.24 cent to close at 97.10 cents per lb, dealing from 96.47 to 98.80 cents. The market is down 4.7 percent for the week. On Thursday, the contract fell by almost three percent to end at 96.86 cents in the lowest settlement for the spot contract since September 2010. Total volume traded on Thursday in the cotton market reached 22,529 lots, against the prior tally of 15,343 lots, ICE futures US data showed. It was also the first time in almost four weeks that the market broke a trading band that had confined December in a range from 98 cents to $1.04. Total volume traded Friday was more than 12,800 lots, some five percent under the 30-day norm, preliminary Thomson Reuters data showed.
LOCAL TRADING
The spinners and textile exporters under impression that trend will ease prices had stopped buying until Saturday but resumed lifting from Monday. The buyers lifted 16000 bales of cotton in price range of Rs 5500 and Rs 6500 depending on quality. Official spot rate was raised by Rs 50 to Rs 6,300, seedcotton in Sindh showed no change, while rates in Punjab were around Rs 2400 and Rs 3000.
On Tuesday cotton buyers laid hand on every bale around 20,000 bales hoping better than expected phutti arrival may be bad to further favourable prices. Spot rate was left at previous days level, while phutti in Sindh was left unchanged.
In Punjab also prices held out previous levels. The paradigm leaves much to worry on the part of sellers who neither can resist arrivals nor can ease prices. Market sources were in a fix whether cotton production will touch higher level than is being placed.
On Wednesday volume of business rose sharply - around 22,000 bales changed hands in price range of Rs 5,000 and Rs 6,400, obviously favourable to buyers, pace of phutti arrivals kept prices in check such as spot rate was left at the previous level at Rs 6300 per maund, seedcotton in Sindh got down by Rs 100 to Rs 2200 and Rs 2700, while in Punjab rates ruled at Rs 2300 and Rs 2900. The local cotton seller had the world trend in view, which is moving downside.
On Thursday no respite was marked in price fall and ginners had to slash spot rate by Rs 200, which showed real trend. However, 20000 bales of cotton changed hands in price range of Rs 4,500 and Rs 6,200. Seedcotton also shed further Rs 100 to Rs 2100 and Rs 2600, while rates in Punjab were quoted at Rs 2400 and Rs 2700.
On Friday despite the panic selling by ginners prices resisted further decline. KCA official spot rate was inert at Rs 6,100. Prices of seedcotton in Sindh were almost unchanged at Rs 2200-2600 and rates in Punjab were at Rs 2400-2700. In ready dealings over 22,000 bales of cotton changed hands between Rs 4500-6,200.
On Saturday KCA official spot rate was down by Rs 200 at Rs 5,900. Prices of seedcotton in Sindh were down by Rs 200-100 at Rs 2000-2500 and rates in Punjab also followed same pattern, losing Rs 100 to Rs 2300-2600. In ready dealings, over 22,000 bales of cotton changed hands between Rs 4500-6,100.
RURAL WOMEN ART WORKS MESMERISE PEOPLE
An annual ritual women artworks are displayed at Lok Virsa. This marvel is held every year to observe International Day of Rural Women, this years theme being "From Food and Security the pace and Security". The rural women belonging to different parts of the country set up more than 30 stalls showing embellished products done by home-based rural women artisans, depicting culture of the areas collected from. The question arises do organisers really pay homage physically to those who deserve or are those who hold place already among organisers. For years the fate of rural women has in fact little changed. Their God gifted talent go wasted, as their products are appreciated or get appreciated by those who simply promote the show.
The rural women, who master wide-variety of arts and force others to praise, should have regular stalls in place of residence. They must be helped by purchasing products, so that they don't have to go to banks, who have reservations - in advancing them money.
Sources, for encountering ill-judged tirade resisting urge to go in to detail, but are convinced rural women whose names go annually to four corners of the country could be able to ensure proper food, education and health to their children instead of just survive somehow.
RUSSIAN MARKET REMAINS UNTAPPED
Who and how can one help separate anybody clinging with self-deception, Russian market tagged with $2.33 trillion yield only $200 million for this struggling country whereas India and China the closest rivals, wrench attractive $5 billion each annually. Farooq Afzal CEO, Forum and former chairman Pak Russia Business Council of Federation of Pakistan Chambers of Commerce and Industry expressing his belief said trade impediments need to be resolved jointly by public and private sectors to capture untapped $2.23 trillion Russian consumer market.
Russian markets are not exception that Pakistanis cast slanting look-where Pakistanis are welcome, are not so welcome. Farooq who led a business delegation to Russia highlighted that Pak neighbours like India and China, Iran and Turkey export goods worth more than $5 billion individually. Pakistanis traditionally are textile exporters since almost beginning of journey this country started. But if given a deeper look in whatever they earn for this country in need of a hefty exchequer quality, as propitiatory offers.
The 22 member Pak businessmen team park-up in Federal Trade Fair for textiles in Moscow were very much satisfied from outcome of the trade fair and concluded gainful business deals with Russian companies. All these sentences immediately above leave painful feeling. Farooq Afzal with touch of pains says as follows: "We need more and more presence of businessmen from all sectors in Russian market if we really have to capitalise on opportunities available in Russia, Russia's neighbour Ukraine with comparatively wee prospect though looked more from this country. Do more has to be said in this connection?" These pages have been writing and writing but with disappointments.
TRADERS, INDUSTRIALISTS REJECT TWO HOLIDAYS
The way loadshedding, outages and strikes, ultimately causing high cost of doing business took away edge in exports, and now two weekly holidays were rejected by traders and businessmen. The harassed looking traders said unless the two weekly holidays are dropped business activity would be thoroughly crippled. They cited last years similar, two weekly offs proved total failure.
The contributors of economy stayed stuck up said former FPCCI President S.M. Munir that industrial sector was already passing through a difficult time and facing many serious challenges including high cost of doing business, declining exports orders, tough competition in export markets.
President AKIA Mian Zahid Hussain showed courage in saying that he had no objection over two weekly holidays in Federal Govt offices related to exports and banks in industrial areas and ports to remain open on Saturday. The Kati former Vice Chairman had good piece of advice who said that business community would resist two weekly holidays, by strongly taking up the issue on all forums. The authorities probably watched that its order was simply ignored in most parts of the country, sources said.
PAKISTAN CAN LEARN FROM BRAZIL
How frivolous it sounds, after nearly 70 years bestowed upon a country rich by all account has to look for help to Brazil for technologies and expertise in agriculture, said to be backbone of our economy. One wrong decision made years back is whose stretched hand to hold for shake - sign of friendship.
The silent admonishment is that Pakistan is paying through nose - has merely raw material to export to the world. A Brazilian team has already contacted us for reaching the depth of knowledge Pakistan was seeking. This country has history of keeping potential in abundance in wait for decades someone to take these at throw away prices, to export back at hefty price. How long it will take to master the art to be acceptable to importers.
Our taciturn foreign minister, if it is too much to say, Hina Rabbani Khar, would be in Brazil in November 2011 to sign bilateral documents. On the occasion an umbrella agreement on technical co-operation will be signed allowing for future endeavour of Brazilian-Pak partnership. If memory is not failing Pakistan is not ignorant about production of ethanol. Any ways it is good to have ties with Brazil known as global leader in agriculture and livestock, particularly in products such as sugarcane, ethanol, soyabeans, coffee, beef and other dairy products, poultry, oranges and fruits.