By admin       2017-10-06

On Thursday the turnover was low on the domestic market. The release of the cotton arrivals for the current season (2017/2018) shown by the Pakistan Cotton Ginners Association (PCGA) to be much higher than earlier anticipated has dampened cotton prices.The PCGA report for the 1st of October 2017 shows arrivals of 3,991,243 bales from which the domestic mills have picked up 2960,039 bales (155 Kgs), while the exporters have lifted 145,886 bales. From the cotton arrivals, 885,332 bales of cotton are still lying unsold with the ginners. Trader has noticed higher arrivals so that mills buying has somewhat abated.Thus nearly 1,300,000 more bales have arrived by the 1st of October 2017 this season compared to the same time during the previous season. It is still premature to say if the pace of arrivals of cotton last fortnight will continue till the end of the season (August 2017 / July 2018).Seed cotton (Kapas/Phutti) prices in Sindh are said to have ranged from Rs 2800 to Rs 3000 per 40 Kgs), while in the Punjab they reportedly ranged from Rs 2800 to Rs 3050 per 40 Kgs, while in the Punjab the reportedly ranged from Rs 2820 to Rs 3050 per 40 Kilogrammes. Lint cotton prices in Sindh were said to have ranged from mRs 5700 to Rs 6150 maund (37.32 KGs), while in the Punjab they reportedly ranged from Rs 6150 to Rs 6200 per maund on Thursday, according to the quality.The tone of cotton prices which were tighter a couple of days ago may become somewhat easier later on if the cotton arrivals continue their pace of higher arrivals as they did over the past fortnight. In ready cotton sales, 200 bales from Chichwatni sold at Rs 6200 per maund (37.32 Kgs), 200 bales from Jahania sold at Rs 6175 per maund, 400 bales from Mianwali sold at Rs 6100 per maund, 200 bales from Shujabad sold at Rs 6150 per maund, while 200 bales from Gojra sold at Rs 6200 per maund on Thursday.In the meantime, the ginners are still hopeful that cotton prices will remain stable. However, the domestic mills have reduced their pace of purchases. On the global economic and financial front, despite several social, business and political shortcomings, many equity markets have reached record high levels. Under this scenario, everybody keeps wondering if the equity indices have reached their peak levels.If we consider the various political unrest and confrontations existing worldwide, the sundry bourses have reached sky-high levels. Amongst the various political difficulties and unsettled conditions, the United States is still facing a radical and untraditional president where even president Donald Trump is often facing noncooperation from his own Republican Party. His ideas are often not politically discussed or filtered through the rank and file of the Republican Party. However, the stock markets in the United States have reached sky-high levels which could tumble.In Great Britain, the government of Teresa May is in a fix. Her political coalition has not only weakened her, she also faces a continuing uncertainty as to how long her government would last. She also confronts a major problem concerning Brexit. The proposed divorce of Great Britain from the European Union has become a major problem so that it appears difficult to envisage when Britain would be able to leave the European Union. Just recently the France Economy Minister Bruno Le Maire advised Britain to settle its payments to the European Union forthwith to be able to achieve Brexit. Moreover, the Scottish people still consider as to how they can become independent.In Germany, the Alternative for Germany right - wing political party (AfD) is a right wing to far-right political party which has become the third largest party in Germany after the 2017 federal election winning 94 seats in the Bundestag which is a major breakthrough for the party. Thus Chancellor Angela Merkel may become the Chancellor of Germany for the fourth time, but her grip in the Bundestag has weakened.In Spain, Catalonia has proposed separation from Spain through a referendum which is being challenged by the central government. Spain has presently suspended the Catalan parliament session in the attempt to block an anticipated declaration of independence by the Catalan president Carles Puigdemont.Besides political uncertainties, the waves of crime in Europe, America and in some other parts of the world have put various countries in an alarming position. For instance, the recent killing of 59 persons and injuring 500 other in Las Vegas by the lone-wolf Stephen Poddock has shaken the American people. It is thus quite probable that the bourses in America and other parts of the world may face a sudden fall in the foreseeable future.

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