Karachi (january 24, 2011) : cotton prices maintained upsurge on the market, though buying fluctuated both ways, climbing to all time high at rs10,600 per maund, spot rate was raised to rs 10,100.
by the time these lines will have been read, indian authorities would have issued directive for shipment of contracted cotton but held for reasons known to the world, but held up 2.5 million bales. this has clear background reported time and again until february 25, 2011. what, however, is not clear whether india exporters have already acted upon and shipped pakistan nearly one million bales or they still are waiting for lousy pak importers to approach them.
if any new twist intervenes whose fault will this be? meanwhile, china has been repentant, though not without valid reason, is looking for filling the gap, created by awful inflation, china will not be the hesitant to place order for as much cotton india will have in store for shipment. in such event pakistan will have to look for quite naturally from anywhere though at greater cost and lag. australia had some setback in queensland where weather caused some damage.
but it has surplus stock and will be in a position to oblige any placing order. turkmenistan is yet another country, which has surplus and will only need a clear demand signal. argentina is also in surplus over and above its needs, will rush supplies as soon s it is approached.
on tuesday the us cotton futures finished up the daily limit on light investor buying as the weak dollar and strong grains complex boosted fiber contracts as the market stayed within sight of its record highs. the cotton market was shut on monday to honour us civil rights leader martin luther king jr. the key march cotton contract on ice futures us climbed the 4.00 cent limit to settle at $1.4544 per lb, with the session low at $1.4247. volume traded was around 9,300 lots, about 50 percent below the 30-day norm, thomson reuters preliminary data showed.
on wednesday the us cotton futures finished higher on investor and speculative buying inspired in part by a weak dollar. fiber contracts also seemingly tracked the early strength and late weakness of grains prices as players awaited a us government report on cottonexport sales. the key march cotton contract on ice futures us climbed 3.50 cents to settle at $1.4894 per lb, dealing from $1.4776 to up its 5.00-cent limit at $1.5044. trading volume of around 22,200 lots was about 15 percent above the 30-day norm, thomson reuters preliminary data showed.
on thursday the us cotton futures bucking a commodity-wide selling spree, closed the daily limit up on suspected mill and options-related fund buying in the market. the key marchcotton contract on ice futures us climbed the 4.00 cents limit to settle at $1.5294 per lb, with the session low at $1.4802. it was the highest close for the spot contract in a month. volume traded was around 19,500 lots, about 50 percent below the 30-day norm, thomson reuters preliminary data showed.
on friday the us cotton futures rallied the four-cent daily limit on fund and speculative buying sparked by an overnight surge in chinese cotton values. the key march cottoncontract on ice futures us rose the four-cent limit to trade at $1.5694 per lb at 10 am est (1500 gmt), with the session low at $1.5372. in china’s zhengzhou commodity exchange, the may cotton futures contract was last done at 30,510 yuan per tonne, up 1,085 yuan on the day. us cotton futures are now close to taking out the all-time record of $1.5912 set on december 21, 2010.
prices stay firm amid thin trade on monday as gainer staged a protest against 3.5pc wht levy on purchase of new phutti. the spot rate was unchanged at rs9000, seed cotton in sindh and punjab rules at rs3900, and rs4600, in ready off take 8000 bales of cottonchanged hands at rs9800 and rs10,000. the local sellers were adamant as world cottonrate is looking up. indian authorities should be approached for supply of over one million bales.
on tuesday ginners stopped buying phutti to give its threat a real shape putting growers in dire straight. in ready take of just 5000 bales of cotton were lifted in price range of rs9500 and rs10,200. in trouble textile exporters were expecting india should rush cotton supplies as pak authorities are earnest in approaching them at the earliest. the eu favoured package for allowing textile products is being perused carefully by the wto body. earlier that is cleared better for this country.
on wednesday there was fresh pace seen in cotton buying despite ginners boycott of phutti in protest against withholding tax. spot rate was unchanged while 12000 bales of cottonlifted in price range of rs9600 and rs10,200.
according to pcga report 10.76 million bales reached ginneries uptill january 15, 2011 against last years 12.23 million bales.
on thursday active mills buying pushed prices higher, edging spot rate by rs100 to rs10,000. the seed cotton prices have frozen since ginners have stopped buying to protest against the government decision to impose levy.
on friday strong mills’ buying was again witnessed. spot rate was unchanged at rs 10,000. phutti prices were not available, as ginners were not buying the commodity from the growers. in ready business, prices were firm as nearly 12000 bales of cotton changed hands between rs 9,500-10,500.
on saturday prices traced the ny cotton futures as a result of strong mills’ buying. as a result the karachi cotton association (kca) spot rate was raised by rs 100 to rs 10,100, they said. phutti prices were not available as ginners were not buying the commodity from the growers. in ready business, prices are on upward march as approximately 20,000 bales ofcotton changed hands between rs 9,800-10,600,
concern over spurious cottonseed?:
why pakistan is so allergic about increasing cotton production despite plan to grow cottonaround 2012. there seems some thing fishy behind as for the last three years sowing is reported but outcome remains disappointing. tried and tested by some american firm and hurriedly brought under experiment by india, china, immediate rivals and ever since reaping good harvest. india has turned second largest exporters with production at 32 million bales, china grows highest and is top importer also.
in pakistan production refused to rise, despite home needs. billions of dollar worth cottonis imported without thinking for a second how much country losses. if once bt2 cotton is experimented successfully this country will cease to be an importer. but authorities know well sources said, why spurious seeds are imported, which repeatedly has given unsatisfactory yield.
a report datelined multan has come out with lingering complaint that spurious cottonseed over 80pc area of sindh and 60pc punjab, which caused virus in cotton growing areas. when authorities will get rid of such practices?
pak authorities still to approach indian official:
if india is dilly-dallying in supply of over one million bales of cotton to this country this country should have been on guard. the cotton prices are changing colours in quick succession, so, unless of course, parties are ethically strong, pakistan authorities should have approached with the twist in indian attitude.
now, most likely, when pakistan willingly went out to fulfil agreed terms in connection with onion, which has, about 10,000 tons reached wagah border and movement ahead, pak authorities were asked to approach indian authorities to start delivery of over one million bales of cotton immediately. it is not clear whether indian cotton ministry door was knocked for the purpose.
the report in this connection noted with regret that cotton export is not driven by economic principles but is a political issue. india with onion selling there rs70-100 and above in places, pakistan rushed without even waiting in return to get cotton from that country. one could only hope and expect from authorities here to follow up case as soon as the design of any country emerges. relaxing position in this case too will end in irreparable loss.
turkey to impose ban on grey fabric:
some recent friendly moves affably between pakistan and turkey had beamed hope of a two way smooth trade. the two countries are bound by the economic co-operation organisation (eco). the most recently struck pact was witnessed between two airlines of the two countries is being processed. a very insignificant action has hard up pak exporters of textile items not surprised but shocked.
pakistan is being pressed from not so close and friendly countries leading to even giving up sovereignty. feeling in pakistan should be if a friendly country had to act to have acted to save its local manufacturers. the fact is not that turkey imposed duty but was constrained to do actually impose anti-dumping duty.
the exporters from pakistan see this turkish move a good one for the value added textile sector to get cheaper cloth in the domestic market. but it was deeply feared that a large number of power looms in faisalabad will be badly affected particularly rendering wage earners jobless or with meagre income.
heim textile trade fair begins:
the heim textile trade fair is held in frankfurt germany but as a matter of fact, products are judged and even taken by hundreds of visitors and promoters from world over. only tact is required by sponsors and exporters of various products. the tdap is doing lucrative job by initiating visits to prospective places particularly fairs such as heim textile.
tdap is in the picture very recently. earlier undivided exporters of grey cloth and textile made up would hark announcement to get ready. good amount of sale proceeds was carried to fatten the kitty. if memory is working past year two teams were offering textile made ups in this fair-one who were sponsored and led by the tdap, while the other were those who were old-hand and had contacts well developed though years of exchange of business. should not such tiff be avoided in the interest of economy and country. we have no knowledge of any matching team this year. we hope tdap efforts improve upon the orders secured amounting to dollars 29.4 million.