Mills buying higher quality cotton

Domestic mills are buying good quality cottons increasingly for fear that higher grade lint will deplete in the market in the foreseeable future. Thus the tone of the cotton market was generally quite steady on Thursday as mills buying resulted in good turnover.
According to one trader in Karachi, about 150,000 bales (155 Kgs) are being ginned daily from which nearly 120,000 bales are sold out because of better quality but nearly 20,000 to 25,000 bales are mostly not sold because of their relatively lower grade quality. Currently it is being surmised that nearly seven million bales (155 Ksg) from the current cotton crop (August 2016/July 2017) have been pressed by the ginning factories and about three million more bales will arrive by the end of this month. The total ex-gin output this season is likely to be about 11.5 million bales.
On Thursday, seed cotton prices in Sindh reportedly ranged from Rs 2,200 to Rs 3,150 per 40 Kgs, while in the Punjab they are said to have extended from Rs 3,000 to Rs 3,300 per 40 Kilogrammes. The difference of cost of cotton between the lower and higher qualities has widened sharply. Lint prices in Sindh are generally said to have ranged from Rs 5,400 to Rs 6,200 per maund (37.32 Kgs) on Thursday, according to the quality. In the Punjab, lint prices extended from Rs 6,100 to Rs 6,200 per maund.
The prices of yarns and textiles are not doing well because of high cost of inputs in manufacturing. Thus most of the mills in Pakistan are not doing well. In ready cotton business reported on Thursday, 200 bales of relatively lower quality cotton from Tando Adam in Sindh sold at Rs 5,500 per maund (37.32 Kgs). In the Punjab, 200 bales from Layyah reportedly sold at Rs 6,150 per maund, while 200 bales from Ghazi Ghat are said to have sold at Rs 6175 per maund.
Later in the evening brokers in Karachi reported that 200 bales of cotton from Rohri in Sindh were sold at Rs 6,050 per maund (37.32 Kgs), while 1,000 bales from Upper Sindh sold at Rs 6,200 per maund. In the Punjab, 200 bales from Lodharan were said to have been sold at Rs 6,175 per maund and 200 bales from Liaquatpur sold at Rs 6,200 per maund in a steady market. Cotton prices in both the US and India also moved up on Thursday.
After the relentless rhetoric and endless energy expended during the recent presidential elections which have catapulted Donald Trump on the top of the American political spectrum, the world has still not recovered fully from this historical event. Electing Donald Trump on the top rung on the American political ladder is no mean achievement for the incumbent 45th president of the United States. A brief review of his declared economic and financial policies could be of interest to the business community.
To begin with, we would do well to recall the economic visions he holds for America and how they will interact with the global economy. President Donald Trump will be endeavouring to create a dynamic, booming economy which should create 25 million new jobs for the Americans over the next decade. He intends to manage this achievement by pushing up the growth in the Gross Development Product (GDP) of America. He aims to achieve the proposed increase in the US GDP by modernising a new regulatory framework by inculcating an America-First trade policy. Donald Trump's target is to boost growth to an average of 3.5 percent per year or even reaching a growth rate of four percent. Basically, Donald Trump believes that America has initiated or joined trade pacts globally which have benefited other countries in the world to the detriment of the United States economy. The American presidential incumbent believes that American economic interest should come first and foremost to rectify the anomalous situation which has benefited other countries at the expense of the United States. Donald Trump also declared in his election campaigns that America has been pushed both politically and economically by China, Mexico, Russia and the Islamic States. He pronounced the American dream as being dead because of the vested business interests and corrupt politicians and that he is the sole figure who can revive it. Trump has cited his negotiating skills and business acumen which will go a long way to resurrect and revive the sinking American economy.
Some of his ideas to make America great again include obtaining more meaningful and positive economic concessions from China, build a wall on the Southern US border to stop the entry of undocumented immigrants and force Mexico to pay for it and to refuse entry of people arriving from the Middle Eastern nations into America.
When Donald Trump's victory as the president-elect of America was announced, equity values fell sharply around the world, but later they recouped most of their losses. Some observers still believe that America stands divided and that Donald Trump's election as president indicates "a stunning repudiation of Washington's political establishment."
According to economic analyst Kevin J. Delaney, the new global economy envisages retrenchment of goods and people into the United States, discarding trade agreements, raising tariffs, curtailing immigration and constructing walls around the country's perimeter. Moreover, a clear divide has risen between the populists and the establishment.