Increasing phutti arrivals help improve activity, soften prices, forced KCA to reduce spot rate to Rs 6,300

With the betterment in the weather as expedited supply of seedcotton, improved and with that sellers attitude also softened. The spot rate began at Rs 7800, while it was marked at Rs 6300 on closing day.
WORLD SCENARIO
The higher cotton production lust has persisted, despite prices are gradually kneeling down. Ivory Coast entangled in internal skirmishes is out with big plan to grow more cotton, from 175,000 tonnes to 240000 tonnes. Not for local consumption, Ivory Coast, and other African cotton growers, sell when offered handsome prices. Brazil has fine weather and water available, grows good quality of cotton but to supply those who fail.
India happily expected 10 percent more or a total of 32.5 million bales. India has asked exporters to be ready to export nearly six million bales. Some months back India had planned to sell cotton, but growers and the textile exporters put pressure on officials to hold back export idea.
China by about this time should have begun buying cotton from its growers. The aim is to support growers from loss. China is largest importer but favours building up stocks when cotton is cheaper.
Pakistan is textile exporter but is handicapped due to two cotton failures for consecutive years. Besides, the EU trade concession package is stuck with the WTO. Very lately Pak efforts to move Indian authorities seems Pak is getting the package in October as the EU plans to offer exporters of this country.
On Monday the NY cotton futures settled down the daily limit due to investor liquidation as weak outside markets and the unrelieved gloom in the economy deflated fiber contracts. The key December cotton contract on ICE Futures US sank the five-cent limit to close at $1.0552 per lb, with the session top at $1.1095. Total volume traded on Monday hit almost 21,000 lots, nearly double the 30-day norm, preliminary Thomson Reuters data showed. Total volume traded on Friday on the cotton market reached 7,519 lots, versus the previous session's count at 16,415 lots, ICE Futures US data showed.
On Tuesday the NY cotton futures ended slightly lower on follow-through investor sales although trade and possible mill buying pruned losses in fibre contracts, with economic fears hanging like a cloud over the mark. The key December cotton contract on ICE Futures US slipped 0.11 cent to end at $1.0541 a lb, trading from $1.0386 to $1.073. On Monday, the contract sank the five-cent limit to close at $1.0552. Total volume traded on Tuesday hit almost 12,000 lots, less than two percent over the 30-day norm, preliminary Thomson Reuters data showed. Total volume traded on Monday in the cotton market reached 21,690 lots, almost triple the previous session's count at 7,519 lots, ICE Futures US data showed.
On Wednesday the NY cotton futures ended lower on follow-through speculative liquidation as worries over global economic health continued to hound fibre contracts. Cotton market players digested news the US Federal Reserve embraced further monetary easing by extending the average maturity of its security holdings. Traders said the market barely reacted because the news hit only a few minutes before cotton trading ended at 2:30 p.m. EDT (1830 GMT). The key December cotton contract on ICE Futures US dropped 2.58 cents, or nearly 2.5 percent, to end at $1.0283 a lb, trading from $1.0275 to $1.0656. Total volume traded on Wednesday hit almost 14,500 lots, about a fifth above the 30-day norm, preliminary Thomson Reuters data showed.
On Thursday the NY cotton futures finished at a 1-1/2 month low on investment fund liquidation sparked by worries over US economic growth and a slowdown, as the manufacturing sector contracts in No. 1 consumer China. World stocks and commodities dove as weak data from China crystallised investor fears of a global recession. The key December cotton contract on ICE Futures US dropped 3.54 cents or 3.4 percent to end at 99.29 cents a lb, trading from 99.07 cents to $1.0283. Total volume traded on Wednesday in the cotton market reached 15,954 lots, versus the previous session's count at 12,893 lots, ICE Futures US data showed. It was the first time since August 11 when the second position cotton contract closed under the psychological $1 per lb mark. Total volume traded on Thursday hit over 20,600 lots, almost three-fourths over the 30-day norm, preliminary Thomson Reuters data showed.
On Friday the NY cotton futures finished higher defying a commodity-wide meltdown as mill and commercial buying enabled the market to end the session as virtually the only winner in a beleaguered commodity sector.
Gold hit a seven week low as it fell a record $100 in a selling spree that kept the metal on track for its third worst day in two decades.
"The lower prices bought buyers out of the woodwork," said Sharon Johnson, senior cotton analyst at commodity brokerage Penson Futures in Atlanta. "I would think we're going to see some follow-through buying next week. "The key December cotton contract on ICE Futures US climbed 1.95 cents or nearly two percent to close at $1.0124 a lb, moving from 99 cents to $1.02. On the week, the market is down 8.4 percent in its worst weekly loss since July 17. On Thursday, it ended at 99.29 cents a lb, marking only the first time since August 11 when the second position cotton contract closed under the psychological $1 per lb mark. Total volume traded on Friday hit above 13,200 lots, over 10 percent above the 30-day norm, preliminary Thomson Reuters data showed. Total volume traded on Thursday in the cotton market reached 22,185 lots, versus the previous session's count at 15,954 lots, ICE Futures US data showed.
LOCAL TRADING
Cautious cotton buying by mills owing to smooth supply of phutti kept prices range bound on the opening day. The spot rate was unchanged at Rs 7300, seedcotton prices in Sindh ruled at Rs 2300 and Rs 2800, while in Punjab at Rs 2000 and Rs 3100. Around 8000 bales changed hand between Rs 6400 and Rs 7300. The buying was cautious, as slight pause in rains has made supplies possible.
On Tuesday bearish trend developed as cotton exporters side away due to quality cotton not offered. The spinners and textile exporters took advantage of cotton exporters staying away. The sun is out of cloud and picking of cotton is up. The funny thing is coming to knowledge that damage has not been as much as earlier authorities had given to understand. The spot rate was down Rs 300 to Rs 7000, seedcotton prices in Sindh ruled at Rs 2000 and Rs 2700, while in Punjab it was at Rs 2300 to Rs 2900. Nearly 8000 bales of cotton changed hand at Rs 6000 and Rs 7200.
On Wednesday spot rate was pulled down by Rs 100 to Rs 6900 showing softness among sellers who were offering quality lots in anticipation of fresh arrivals. Seedcotton prices in Sindh were quoted at Rs 2000 and Rs 2600 and rates in Punjab were at Rs 1800 and Rs 2800. Nearly 11,000 bales of cotton were bought in price range of Rs 550 and Rs 5700.
The speedy arrival caused price slip besides signal of downdraft in world cotton rate too pressing local sales. On Thursday falling trend continued, as spot rate lost Rs 200 to Rs 6700. The pace in arrival continued to rise sending prices down. In Sindh seedcotton sold at Rs 2200 and Rs 2600 and in Punjab phutti prices ruled at Rs 1800 and Rs 2800. In ready business nearly 10,000 bales changed hands in prices ranging between Rs 5350 and Rs 6800. The cotton production world-wide is increasing owing to better return. However, the uncertainties owing war like situation in Africa, ME and Japan demand for cotton may dip.
On Friday ginners' patience helped prices to resist sharp fall. In the meantime, trading activity came down due to mills and spinners' cautious attitude. KCA official spot rate was reduced further by Rs 300 to Rs 6,400. Prices of seedcotton in Sindh were at Rs 2000-2600 and in Punjab unchanged at Rs 1800-2800. In ready dealings nearly 6,000 bales of cotton changed hands between Rs 6,000-6,500
On Saturday prices resisted steep fall n Saturday as mills increased buying, on the other hand, the ginners stopped selling in an effort to stabilise prices, dealers said. KCA official spot rate was cut by Rs 100 to Rs 6,300. Prices of seedcotton in Sindh were inert at Rs 2000-2600 and rates in Punjab were unchanged at Rs 1800-2800, they said. In ready dealings nearly, 10,000 bales of cotton changed hands between Rs 5,500-6,400.
KHADI INDUSTRY BEING REVIVED
There are one, out of nearly 100 people walking along US, wear Khadi, generally acquired from neighbouring country. They hate other than Khadi made "wears" can't be said for sure, but, if by mistake offered wear made of even the most liked fabrics, the Khadi wearers just turn back. If Smeda is planning Khadi Industry in Punjab and keep it up, will be a service for the few who at present are constraint to beg some one going to neighbouring town or country to buy a piece of Khadi and deliver them.
Khadi is generally looked down up by fashion wearers of varieties. On the Khadi wearers can speak volume in praise. Smeda provincial chief Alamgir Chy highlighting said the project also aims at ensuring economic empowerment of marginalised sections of the society including women, landless village artisans through skill development and provision of opportunities for income generation and to train and promote skilled labour in Khadi sector.
If the sector could be so good for so many people why Khadi industry never come to mind of high profile patch menders. The new thinking is emerging among young people and long stretch of sterile land has been matter of long past. Let us hope for the best.
SPORTSWEAR INSTITUTE IN SIALKOT MORE THAN WELCOME
Sialkot is soon going to have a maiden and perhaps unique sportswear Institute. But those who live and pay a visit to Sialkot know its products around four corners of the globe and in sports loving countries. Sialkot chamber is associating its size and weight to give Sialkot worth that its deserves.
Indifference of authorities this city unwillingly embrace embolden people not to beg, to build a smart export city which by nature its is. In quick succession, when people who created an entirely new country on the world map unfortunately left this full of potential panoramic country. Unfortunately non-of the rulers followed had ability to rule and build the country than they were handed over from. Majority of rulers own fake education certificate even after decades of its topsy-turvy existence.
If any body developed projects, they are taken up close to hometown of the rulers. Sialkot, the birthplace of dreamer of Pakistan, was hardly put on map for big projects, even that much big that has earned its name for itself. Textile related projects are developing in cities, which have already such many, but Sialkot has been made a shy city. Now Sialkot will have sportswear institute assumingly worth any in the world. Let the institute emerge, earns the name, planners have in view.
TALKS ON FREE TRADE AGREEMENT NEXT WEEK
Following Supreme Court's suo motu case, Pakistan has decidedly become much less risky to take business visits, kept pending for over four years. By the time this writes up will be in readers hand, some concrete agreement awaited so long may emerge. Earlier reports would land in this country through the US House discussion, which used to be disappointing. How urgently the matter this time has been taken up is evident from the fact that the information came out from the month of economic officer of the US embassy in Islamabad, while addressing relevant textile leaders.
The officer said the US is committed to establish ROZs and a high level delegation comprising several representatives is due in Faisalabad any time. The representatives with authority will have talks on free trade agreement and market access. The report is silent whether a decision to this effect is in the hands of representatives or a chapter will reopen and voted in US house.
However, the textile leaders who were expected to summarise the talk were overly cautious, who talked about war that Russia lost and the US showered scores of favour but not what the Pakistan textile exporters were eager to be told. This hush-hush on the issue made one thing more than clear that team expected next week is coming for talks sake.
JAPAN INTERESTED IN PAK TEXTILE CITY
Japan is itself in deep trouble because of Tsunami that hit it with full furry some months back. But being the second or third economic giant has announced to invest in Pak Textile City, Karachi. The sources, who are in textile world have expressed hearty welcome. They believe the project will now gain pace and may help exports of textile products before long. There are textile related quite a few projects probably waiting completion and working of Pak Textile City Karachi.
The prospect brightens that with Japan, others, friends, like China and Saudi Arabian multi-billion are too come forward. The projects such as PT City Karachi, Textile City Faisalabad and Garment City are not coming in reports adding to doubts local textiles big slots are shaky in presence of projects not yielding encouraging returns. Any such hazy idea should be countered by stress on clearing way for foreign investors.
As a matter of fact authorities should know shortcomings and tact to cover them. The report clearly pointed out that two Japanese representatives came all along to Karachi City with aim to visit PTC project but failed owing to heavy rainfall. The authorities naturally will express their inability to fight natural phenomena but violence. Killings and such road blocks, should be cleared and kept clear, Had there been no rain and had Japanese visited the authorities one can expect some shape would have taken. If authorities can possibly keep in mind challenges they are difficult but not impossible to cover up.