Holidays in New York dampen sentiments on cotton market

The long holidays in New York for Easter and local spinners transacting most deals without the knowledge of market operators, dampened sentiments on cotton market. The official spot rate was not cared much which was left at Rs 2900 to satisfy the lust of buyers. However, spot was down Rs 25 to Rs 2875 on Saturday.
FOREIGN SCENARIO: The players were upset in view of the long holidays, ahead and a vain wait for a positive direction was what led to further softening of the futures.
The players are expecting likely switching over the soyabean unless cotton futures match with gains with other crop.
On the first trading day futures were down on speculative sales as the market appears stuck in a range until more news comes out on plantings and growing conditions for 2004 cotton crop.
The supply and demand report was also consider for market movement. The second session was hardly changed.
Traders commented that speculators were paying up to get out of May and to get into July. Some trade buying emerged in cotton but it was not nearly enough for the market to recoup its losses.
The USDA supply/demand report was out expected to reactivate trading, so the report should provide limited impetus for market movement.
They expected that current 6-10 day forecast about weather calls for above average precipitation for most of the cotton belts and hoped will augur well.
The Wednesday session was mixed as the market focused on rolling position in the nearly May contract into forward months.
Fundamentally cotton futures are under pressure and stand just above. Chartists place support for May contract at 61.50 and 6060 cents which resistance was seen at 63.40 cents a pound.
Pre-holiday session was also mixed in activity featuring small speculators and spread trade ahead. Meanwhile USDA sales report showed confirmed US net upland sales of 431,500 RBs (500 Lbs). Shipments soared to marketing year high of 441,400 RBs.
LOCAL TRADING: Trading pattern has lost its shape so much that reporting about daily deals and fluctuations in prices is next to impossible.
However, the feature could the termed as modest trading took place but the details were available next day.
The spot rate had not changed, being at a lower level, until Friday. The nearly 3000 bales sold reported by the DMR was that occurred on the week-end.
The official spot rate spill-over unchanged at Rs 2900 without ST and upcountry expenses.
The ready price range was between Rs 2850 and Rs 2900. The second day's proceeding was nil.
The market sources said buyers continue to press ginners for lowering prices. The whispers were also in the air that imports are being expedited - around 200,000 bales.
Trading was not reported on Wednesday. It was on Tuesday that some deals were struck official rate was same and some low quality lint was as low as Rs 2400. Ginners were seeking help from world rate which was not coming forth.
On Thursday market remained cheerless with not deals heard. Spot rate was at Rs 2900. On Friday, brokers nodded no when asked if they had heard any deal having struck.
The New York cotton futures were also soft and featureless to provide any direction to Pakistani counterparts.
The cotton target for the 2004-05 season was being discussed amid doubts. No trading was reported on Saturday.
Spot rate was reduced by Rs 25 to Rs 2875 being the only feature. The ginners outlook was apparent and it was expected trading was gather pace on Monday.
REVIEW OFFERED: Whatever, be the late realisation prompting EU to offer review anti-dumping decision on Pak bed lenin exports, is certainly a good gesture from a friendly country, (countries).
The authority and exporters in Pakistan feel it should have come rather earlier. The EU authorities should never be swept away merely by manufacturers complaint, out of sheer compassion.
In the present case if importers had been warned by EC about possible challenge, but proper enquiry was not followed.
The victims, Pak exporters have all along been protesting that penalty was not anywhere near justice.
The penalty 13.1 pc is huge enough to be decided on whimsical perception. The change of heart is said to be in response to what Humayun Akhtar, Commerce Minister.
Pak memoir sent to all European Union member countries. After thorough discussion and listening to exporters it was decided to have more information particularly regarding technical issue.
An identical meeting is planned to look into the issues in detail after receiving response from EU.
However the victims have so much disappointed they have proposed a drastic retaliatory steps of stopping imports of chemicals, dyes and textile machinery. Now they are telling each other that decision to impose ADP was clearly arbitrary and without any tinge of legality, nothing less than from total punishment should be accepted.
They were however expecting to see the matter closed and normal flow of bed linen to EU countries forthwith. That quote has been enhanced for newly inducted six countries, in the EU was welcomed but expectation here was rife that proper treatment would be additionally welcomed!
TWO TEX CITIES: One textile city still under planning was difficult to digest for many, that KCA chairman pleaded for two textile city in Karachi.
The occasion was visit of SBP Governor to the KCA to talk with the Board Directors. The Governor on his terms hit at several weak points such as mistrust and out-dated machinery in textile industry is widely in use.
The fact has kept looming individual exporters and businessmen but exchequer has remained thirsty ever since textile emerged as the most important foreign exchange earners.
The governor pointed out how American investors have been refusing to set up joint ventures. He added that Pak companies are not trusted by them (Americans) and believe that Cos reports are not true reflection of their performance.
The Governor earlier had hinted that companies should pay taxes regularly. Don't default keep clean your balance sheets, he advised players in textile and cotton fields.
He dropped a feeler that 14000 Indian companies are registered in Singapore and doing business in South East Asia.
He narrated story of his Bangladesh visit where he observed not a pound of lint was produced but are exporting $one billion worth of products.
While the governor expressed the hope Pak exports could fetch $30 billion annually but placed his fingers on the aching part saying we are still fighting the 21st century trade war with early 50's instruments of the previous century.
TAIL PIECE: The fact that garment exports declined by 26 percent, may will find disturbing despite overall growth said to be robust.
The factor, which led to such a plight, was given as shortages of cloth and yarn.
The authorities have for sometime have realised have richly it is to enhance exports of garments and value-added products, but the ground reality show little care is attached so far.