By admin       2018-04-27

On Thursday the domestic cotton market displayed a steady posture but sales remained very slow. It is now nearly the end of the current cotton season (August 2017/July 2018) in Pakistan with about only 300,000 bales (155 Kgs) left unsold with the ginners. With the view that this year (2017/2018) Pakistan would produce 11.6 million or less bales (155 Kgs) many domestic mills covered their seasonal requirements through imports to compensate for the impending shortfall. Thus despite the shortage in the current crop compared to a consumption figure of about 14.5 to 15 million bales, domestic prices are not strengthening because most of the remaining crop of about 300,000 bales is reported to be of lower grades. Imports by mills are estimated at three million bales while exports would be nearly 300,000 bales. In general, the price of lint cotton in Sindh is said to have ranged from Rs 6200 to Rs 7800 per maund (37.32 Kgs) on Thursday, according to quality. In the Punjab, cotton prices were reported to have ranged from Rs 6400 to Rs 7800 per maund, as per quality. Global cotton prices were said to range from steady to strong. Yarn and textile products prices were said to be stable and steady while textile exports were reported to have increased. However, several mills have closed over the recent years some of which may not open again. New crop cotton sowing in Pakistan (August 2018/July 2019) started late due to insufficient availability of water. Water supplies improved later on but the supply of water is still reported to be rather irregular. Thus the water supply for irrigation has been a problem since the start of the season. Recent snowfall in the northern regions and intermittent rains on the plains may provide more water to the cotton fields henceforth. In ready sales of cotton Thursday, till the evening 800 bales of cotton from Fort Abbas were said to have been sold at Rs 6325 per maund (37.32 Kgs), while 200 bales of cotton from Ahmadpur East sold at Rs 7400 per maund. On the global economic and financial front, the premonitions that the global economic and political cohesion which was built over the past several decades viz. over more than half a century is being ripped apart contain more than more simple visualisations. President Donald Trump's earlier forays into the Paris Agreement on Climate Change signed by 176 countries, the so-called Trade Wars against China, the European Union and some other countries around the world, and now his insistence to renounce the international nuclear deal with Iran are serious problems which are likely to tear apart the very bedrock on which the global economic edifice has been built. On a recent state visit to America on the invitation of President Donald Trump, the French President Emmanuel Macron minced no words while addressing a bipartisan meeting of the U.S. Congress in challenging President Trump's various views on Climate Change, Trade Wars and now his insistence on unilaterally scrapping the nuclear deal with Iran. Macron candidly told the American House of Representatives that "we can choose isolationism, withdrawal and nationalism", but at best it would be a temporary or short-term solution. Emmanuel Macron added that such an approach would not hinder the evolution and march to progress around the world. Macron minced no words in rebutting insular approach to global socioeconomic problems by unilaterally pushing the doctrine of "America First". Macron advocated mutual respect between different countries in a spirit of multilateralism. On the eve of her visits to America for talks with President Donald Trump, the German Chancellor Frau Angela Merkel is also reported to have stressed the significance of free trade and cited agreement between the European Union and the Mexico for a new pact as a viable example. Frau Markel cited the protectionist policies of President Trump who carries the notion that globalization has hurt manufacturing jobs in the United States. It may be recalled that earlier in March 2018 he had slapped import tariffs on steel and aluminium to protect the American manufacturers. Besides President Trump, several other stakeholders in America and the Western World, besides China, Japan and several other countries around the world subscribe to the view that global trade should be as free as possible. Frau Merkel is reported to have added recently in Hanover that the rules of the World Trade Organisation (WTO) provide the proper framework and bilateral agreements can help to assist in "Consensual negotiated solutions".

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