September 06, 2013
DR ZAFAR HASSAN
Besides the earlier intensity of the monsoon rains and floods, some respite from rainy weather has resulted in more seedcotton arrivals from Punjab which has kept lint prices at bay at the approaching weekend. The quality of Punjab lint has also improved so spinners in Punjab are now also inclined to buy cotton in Punjab who had earlier concentrated on Sindh cotton.
Thus seedcotton (Kapas/Phutti) prices on Thursday were said to range from Rs 3000 to Rs 3100 per 40 Kgs in Sindh while in the Punjab they extended from Rs 2700 to Rs 3000 per 40 Kgs, according to the quality. Punjab seedcotton quality is now also said to be improving providing incentive to the spinners to pay more attention to Punjab lint. Lint prices in Sindh were said to have ranged from Rs 6750 to Rs 6800 per maund (37.32 Kgs), according to the quality, while in the Punjab they reportedly ranged from Rs 6700 to Rs 6725 per maund in a quieter market.
If monsoon rains and floods peter out in September, more seedcotton arrivals will pick up in the Punjab and possibly ease the cotton supply. However, it still remains early to predict anything about the rainy weather. Presently the mills and exporters are both enquiring for cotton in the market. At present, rains and floods have comparatively toned down.
It ready sales on Thursday in Sindh, 1000 bales of cotton from Sanghar reportedly sold at Rs 6775 to Rs 6800 per maund (37.32 Kgs), 1000 bales each from Shahdadpur and Tando Adam sold at Rs 6775 to Rs 6800 per maund and 1000 bales from Mirpurkhas sold at Rs 6750 to Rs 6800 per maund. In the Punjab, 200 bales from Chichawatni sold at Rs 6700 per maund while 200 bales from Khanewal sold at Rs 6725 per maund.
According to the report of the Pakistan Cotton Ginners Association showing seedcotton arrivals for the current season (2013-2014) upto the 1st of September 2013. 1,725,853 lint equivalent bales were received which is 0.31 percent short compared with the same period of the previous season. From this quantity, the mills have lifted 1,435,769 bales, the exporters picked up 69,654 bales and unsold cotton lying with the ginners was said to be 220,430 bales.
Senior official of the International Cotton Association (ICA) are in Karachi these days and are conducting two very important training courses for the cotton community in Pakistan through the Karachi Cotton Association (KCA). Deliberations have been scheduled for Thursday and Friday viz. the 5th and 6th of September 2013 at the Sheraton Hotel, Karachi. The first course relates to the responsibilities of an agent under a cotton contract (Thursday), while the second course concerns the Cotton Contracting and ICA Bylaws and Rules (Friday). ICA is the foremost cotton trade body in the world which facilitates the performance of cotton contracts in a sophisticated and practical manner. Cotton trade in Pakistan should be grateful to ICA for conducting these important courses. The Chairman and Executive Committee members of the KCA held a dinner in honour of Mr Ahmed Elbosaty, President of ICA, Mr Mohit Shah, first Vice-President, ICA, Mr Derek Tanner, Ex-President ICA and Mr Kai Hughes, Managing Director, ICA on Thursday.
On the global economic and financial front, this week global stocks halted their fall of last week when several bourses had reported dismal and disheartening performances in a number of countries. During the previous week, Standard and Poor 500 index is said to have recorded its steepest decline since May 2012. Brazilian stocks underwent the worst week in more than two months. Canada’s main index also fell last Friday. In brief, the business world was facing turmoil on the news that the United States and its allies will attack Syria on using chemical weapons on the rebels.
However, overall improvement in the Eruozone reported this week and some improvement in the United States manufacturing and construction sectors also gained the confidence of some investors. But, the Syrian factor may well but a spanner in the global economic recovery which appears to be making a modest start.
Thus any perceived global economic recovery, however minimal at this juncture, remains decidedly weak and fragile. World growth may be picking up modestly with some Eurozone business having seen their best month and the Chinese services sector may have hit a five months high to instill more confidence and optimism in global growth, several considerations still call for caution in being over optimistic.
The leading points which will impose more pronounced effect on global economic recovery will now be increasingly political. On the purely economic side, it has now suddenly dawned upon us that all the apparent gains and growth were due to easy stimulus money which flew from the United States and the Eurozone to the emerging markets and the component countries like the BRICS. Now with the anticipated curtailment of quantitative easing, the emerging markets will be left in the lurch and will face an economic downturn.
The most formidable problem facing the politico – economic world is that of Syria. The schism between the policies of the United States on the one hand and China and Russia on the other pertaining to the Syrian crises threaten the global economic condition seriously which is already out of gear. Therefore, the global equity and commodity markets are very jittery and nervous.
Now, therefore, besides the peripheral Eurozone countries like Greece, Portugal and Spain, the emergent markets are also facing deepening economic trouble. The Middle East and North Africa are already sitting on a powder keg. Any initiation or escalation on the Syrian front can throw the global markets in a terrible turmoil. What is thus needed is a display of uncommon statesmanship on the part of the leading powers of the world to cool down the festering Syrian problem and turn their full attention towards global economic rehabilitation and growth. Courtesy Business Recorder
Published in ZaraiMedia.com