By admin       2017-11-27

Despite the fact that domestic mills have over their cotton requirements adequately from the local market and also booked a reported 1.8 million bales (155 Kgs) from foreign origins, local cotton prices remain perched at season's high levels. Indeed there have also been wide fluctuations going up and down in the range of Rs 1100 per maund (37.32 Kgs) over the past fortnight. Thus seed cotton (Kapas/Phutti) prices are said to have risen by about Rs 100 per 40 Kgs. since last week. In Sindh, the seed cotton prices are said to have ranged from Rs 2800 to Rs 3300 per 40 Kgs on Thursday, according to the quality. In the Punjab, seed cotton prices reportedly ranged from Rs 2800 to Rs 3450 per 40 Kgs, according to the quality. In Sindh, lint prices reportedly ranged from Rs 6100 to Rs 7000 per maund (37.32 Kgs) according to the quality on Thursday. In the Punjab, the pressed bales prices ranged from Rs 6500 to Rs 7000 per maund touching season's peak. It is estimated that lint production in Pakistan could range from 11.5 to 12 million bales (155 Kgs) during the current season (August 2017/July 2018). Domestic mills consumption could range from 14 to 14.5 million bales. Exporters could ship from 125,000 to 200,000 bales, while the domestic mills could import from 2.5 to three million bales of cotton from anywhere. According to one report, the domestic mills have already booked 1.8 million bales (155 Kgs) of cotton from which they are said to have booked 1.25 million bales from America. Textile circles have intimated that yarn prices are going very well and significant improvement has been reported. One reason for raw cotton prices hike domestically during the current season has been inclement weather as standing crop faced more rains in the early part of the season and later hot weather also compromised the quality of cotton. Cotton sales reported on Thursday included 200 bales from Fort Abbas in Punjab at Rs 6600 per maund (37.32 Kgs), 400 bales from Shujabad at Rs 6800 per maund, 1000 bales each from Firoza, Rajanpur, Mahamadpur Diwan and Khanewal, 1400 bales from Fazilpur and 2000 bales each from Rahimyar Khan and Sadiqabad, all at Rs 7000 per maund. Naseem Usman panel was elected unopposed as members of the Brokers Advisory Committee of Karachi Cotton Association for the year 2017/2018. Those elected are Naseem Usman, Chairman, Abdul Jalil Khan Vice Chairman, Girdhari Lal Assudomal, Secretary, Tariq Abbas, Joint Secretary, Muhammad Amir Nasim Osawala, Treasurer and Azhar Abbas, Public Relations. On the global economic and financial front, there has been a general rise in economic and financial growth in major countries, regions and several countries around the world during the current year (2017) ending December. Barring some ifs and buts, it is also believed that the United States Federal Reserve, the European Central Bank and indeed other central banks such as those in China and Japan have provided adequate and indeed the much needed stimuli to the sundry banks and borrowers enabling them to put new investments into their economies. However, the 64 thousand dollars question remains whether the hard-earned global economic recovery will continue or again slip backwards. In this regards, some pertinent fears are being expressed by certain economists who feel that the global economy could lapse again because of the colossal borrowings the sundry governments have made over the past decade which have to be paid back. Another fear being mooted is the vulnerability of the Chinese economy which could slow down following a restraint in credit creation leading to possible fall on the equity markets. Another fear pertains to the possible, even though gradual, withdrawal of the extraordinary stimuli which have been provided by several of the central banks over the past decade or so. Such a move could create panic on the equity markets and resultantly crash the bourses. It may be added here that economic analysts are worried that rising interest rates quickly could breed inflation which could unduly hamper the earnings in the global economy and consequently slow down economic growth. Besides these financial issues, there are other possible problems around the world which could push back any sustained and equitable global growth and development. Increasing political problems around the world do not bode well for the global economy. For instance, the growing political problems between Saudi Arabia and Iran have increased tension to a high pitch. Such an issue could conflagrate throughout the Middle East which is already facing many issues ranging from sundry localized disturbances leading to large killings, creating millions of refugees and breeding further tensions in the area. The problems of Rohingya refugees thrown out brutally from Myanmar to Bangladesh are another instance enhancing global economic instability. The instability in political circles of Frau Merkel's Germany or the uncertainty of Theresa May's government in the U.K are also instances which make it hard to surmise that global economy will continue to progress with the desired amount of certainty. Cotton firm : Karachi: Cotton arrivals increased at the Karachi Cotton Exchange on Friday, while spot rates remained firm. The spot rates stood unchanged at Rs6,600/maund (37.324kg) and Rs7,073/40kg. Ex-Karachi rates also remained firm at Rs6,745/maund and Rs7,228/40kg after an addition of Rs145 and Rs155 as upcountry expenses, respectively. An analyst said demand in the market remained intact, which kept the prices stable, despite an increase in the arrivals. “Pakistan’s crop is going to be short against demand that will keep the prices firm,” he added. A total of 22 transactions of around 43,000 bales were recorded at a price of Rs6,100 to Rs7,000/maund. Notable deals were recorded from Ghotki, Daharki, Rohri, Khairpur, Fazilpur, Rahimyar Khan, Khanpur, Feroza, Liaquatpur, Mirpur Dewan, Rajanpur, Sadiqabad, Shujabad, Ahmedpur East, Fort Abbas and Chistian.

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