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NEW YORK: Sustained steady trend prevails on cotton market, as prices remain range-bound; spot rate higher by Rs 100 (August 22, 11)

NEW YORK: Sustained steady trend prevails on cotton market, as prices remain range-bound; spot rate higher by Rs 100

A couple of surge in New York cotton trading past week, as subject to speculative trading, stronger push from outside markets and indeed weaker dollar. A couple of weeks back analysts had predicted cotton that surged to dollar 2.197 will see burst in due course - nose diving to 70 cents and 60 cents a level where ballooning had begun. The world ranking economists and running world powers are constantly warning worsening days ahead. They lay fingers on Europe debt crisis, government and financial institutions struggling to bring to a halt.

The cotton dealers are now turning eyes to USDA report to have stronger grip on picture that will emerge in making cotton-growing state Texas faced with unprecedented drought and either side of Mississippi River hit by floods. Gold is only safe heaven, which is hitting peak on almost daily level. Oil has been left behind too, manifesting the world which way moving. Middle-East major oil supplier is facing uncertainties, Japan the bulging economy has lost its shine. As stated about those powerful hands out to set the recession trend is heeded to and firmly supported.

On Monday the NY cotton futures closed higher on follow-through speculative buying but trade sales in the options ring took the steam out of the market and knocked it back in late trade. The key December cotton contract on ICE Futures US rose 3.52 cents or by 3.5 percent to finish at $1.0404 per lb, trading from $1.0052 to the daily limit of $1.0552. Total volume traded hit over 12,700 lots, about 8.5 percent under the 30-day norm, Reuters data said.

On Monday business on cotton market was marked down due to quality factor caused by heavy downpour. The spot rate inch up at Rs 6,400. The seedcotton in Sindh was lower by Rs 100 to Rs 2600 and Rs 2700. In ready take off 3000 bales of cotton changed hands between Rs 6250 and Rs 6600. The government has accepted ginners demand to withdraw 3.5 percent withholding tax but cancellation report is awaited. The rains have stopped but Met office see more in offing.

On Tuesday mills buying improved on cotton market. Spot rate stayed put at Rs 6400. In ready take off 8000 bales of cotton were lifted in price range of Rs 6150 and Rs 6600. The seed cotton in Sindh ruled lower by Rs 100 to Rs 2500 and Rs 2600, while rate was also down in Punjab and quoted at Rs 2500 and Rs 2700. Buying lifted before Eid holidays. On Wednesday buying improved with prices going up as far of rains' ill effect gripped the buyers. However, realisation dawned that price will remain in check for the time being. The spot ginners maintained at the previous days level.

The cotton users lifted nearly 10,000 bales in prices between Rs 6150 and Rs 6700. Phutti in Sindh rose by Rs 100 to Rs 2600 and Rs 2700. In Punjab phutti rose by Rs 100 to Rs 200 to Rs 2600 and Rs 2900. The global price trend depicts steadiness. On Thursday some 7000 bales of cotton changed hands in trading as spot rate stayed put at Rs 6400. The lint sold between Rs 6200 and Rs 6700. Sindh seed cotton was unchanged, while in Punjab rate were Rs 2600 and Rs 2900. The spinners are unfailing buyers hoping price may turn to gain. The global market prices also depicting gradual dip.

The textile exporters are firm to make the textile year memorable but they say they are facing liquidity crunch. Will this "disqualification" be ever rules away from our businessmen and exporters? Perhaps never. The government and its institutions have never shown strength viability. The present government movement is perhaps slowest and the kitty emptier.

The export target at $25 billion has been fixed to give a good name to historic policy 2009-14 of ministry of Textile Industry. All these are preliminary: the purpose ahead is to talk the BD government the alone garment exporters, so that they can leave behind other countries despite quality and acceptability by the importers. The government released subsidies in billions so that gives lead. Pak exporters of textile products have already shown very recently despite so lamented high cost of doing business earned $14.1 billion much to the satisfaction of all-exporters themselves and authorities.

The textile stakeholders when faced with crisis talk to market mechanism and fair play for solution. Have these two solutions not tried in the past. But solution was short lived and fall out left behind much more wanting. In these write ups "ethics" has been often suggested to attain long lasting gain. The suggested world, however, cannot be found in any look on economies.

Abrupt surge and as abrupt giving in cotton prices rendered consumers nearly bewildered who looked right and left for some support. Last year in March global cotton futures soared to nearly a century old peak - $2.197 cents, which with the production reported from four corners as sufficient to cover consumer needs besides worsening condition is tsunami hit Japan and uncertainties in ME and elsewhere. The textile manufacturers and exporters hit hard by what they lament high cost of doing business were looking for a neutral buyers like TCP, which Punjab Agri Minister hopefully called upon the federal government to buy some three million bales expected to work as price stabiliser.

Is truth knocking conscience of Pakistan seemed resounding as Kissan Board declared it is determined to protect farmers from clutches of exploiters. In a recent search what needs Pakistan to take out of quagmire only one out many interviewed said "take to truth and see progress and prosperity of Pakistan. The ginners were out waging struggle against government with holding tax three percent, which ultimately link the farmers.

The government realised mid-term election in view, to accede to the ginners protest. Encouraged by the back up, KBP came out with intrinsic maiden pledge that it would protect farmers from the clutches of exploiters, making spectacularly clear intending IMF, WB, banks, fertiliser manufacturers, sugar mills rice mills, cotton mills and hoarders of agriculture goods. The last words have left nothing to be desired to be shield against exploitation.


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