Though lint prices lost about Rs 200 per maund (37.32 Kgs) over the past couple of days, prices were reported to be steadier on Thursday. Anyhow, the ex-gin price of Grade 3 cotton was fixed at Rs 7400 per maund by the Karachi Cotton Association on Thursday. Though the tone of the cotton market became steadier, the turnover was said to be on the lower side.
Sindh styles of cotton from the current season (August 2017/July 2018) were said to have been mostly sold out. The price of seed cotton (Kapas/Phutti) from whatever is left out in Sindh and also in Punjab both reportedly ranged from Rs 2600 to Rs 3100 per 40 Kgs.
Sowing of new crop cotton (August 2018/July 2019) is said to have started moderately in Sindh but paucity of water is hindering the planting of cotton. Punjab sowing of the new crop is scheduled to start from the beginning of next month, viz. April 2018.
Lint prices of the current crop (2017/2018) in Sindh are said to have ranged from Rs 6200 to Rs 8000 per maund (37.32 Kgs) on Thursday, according to the quality. Pressed cotton prices in the Punjab are said to have ranged from Rs 6400 to Rs 7800 per maund.
This year's (2017/2018) ex-gin cotton output is being estimated at about 11.6 million bales (155 Kgs). Imports of some recap cotton into Pakistan are being reported from America, while smaller quantities of cotton are also being purchased from India. Yarn and textile prices, according to the traders in Karachi, are now doing relatively better.
According to the brokers in Karachi, a sale of 1600 bales of ready cotton from Daharki in Sindh took place at Rs 7800 per maund (37.32 Kgs), while 1644 bales of cotton, also from Daharki, sold at Rs 8000 per maund on Thursday. Now spinners are very worried that most of the remaining quantity of cotton in the domestic cotton from the current season (2017/2018) is now of lower quality.
On the global economic and financial front, the leading issue remains the fear of trade war between America and China which prospects are now quickly going viral to other countries around the world. If trade wars escalate and spread around other parts of the world, we may yet envision the rumblings of global economic disarray which would easily provide fertile grounds for another Cold War.
If the Sino-American trade disputes go deeper, they could steadily grow into an irrevocable trade war which may easily go out of control. In this regard, Reuters has reported from Beijing that China has warned America on Thursday to desist from opening a Pandora's Box which would "spark a flurry of protectionist practices around the globe".
Reportedly it has been pointed out that as a countermeasure to taxing Chinese imports such as Chinese aluminium and steel products, China could conveniently slap import taxes on such American goods and manufactures ranging from aircraft to agriculture, cars, semiconductors and even services.
In this regard, the Chinese authorities have indicated that a dialogue with the Americans could solve the issue. However, failing a meaningful dialogue with America, China is expressing its intention to take necessary steps to protect its legitimate interests to safeguard its economy.
In this regard, President Donald Trump's leading trade representative Robert Lighthizer told a CNBC television audience on last Wednesday that he is willing to offer "a 60 day window before tariffs take effect on Chinese goods", but it could take longer to bring the trading relationship between China and America closer. Lighthizer indicated that it could take years before the American and Chinese relationship on trade is finalized.
Though primarily, due to the ongoing trade war fears between America and China that the equity markets during the current calendar year (2018) have become very volatile, other issues like the Brexit have also contributed to the volatility of the global bourses. Furthermore, the technology companies like Tesla Inc. and Nvidia Corporation provided enough bad news to send down the stock markets. In addition to the technology shares, Zuckerberg's Facebook problems have also provided serious difficulties on the stock markets which are fluctuating violently since the inception of this year (2018).
These events and occurrences point to very a vulnerable future for the equity markets around the globe which could bring some very unhappy times henceforth, possibly leading to a sizeable economic setback globally.