Only about 5,000 cotton bales change hands on domestic market as holiday mood prevails

Trading in cotton was subdued during a couple of days as sellers and buyers both were in holiday mood during which 5,000 bales changed hands whereas spot rate was unchanged at Rs 6,000.
WORLD SCENARIO
India expecting record cotton output at 35.5 million bales being the secured largest producer and cotton exporter. The delayed rains and non-seasonal rains in Gujrat are apprehended. But then increased acreage is likely to keep production tight. Exports quantity has been optimistic at seven million bales from 6.5 million bales in outgoing year. China intends to buy from its farmers to stock lint. The purchase price is expected at 19,800 yuans or around.
There was nothing new about US except lingering ill effect of drought, floods and hurricane. Due to holidays latest development in Africa was not at hand. However, record price hike induced farmers to grow cotton but they looked up from authorities to pay more to supplement their input and other cost. Australia had also report bumper cotton crop with slight damage from heavy rains. Pakistan is faced with second consecutive floods in cotton area, though, growers have been keeping a cautions eye. The sellers have been keeping prices at level that can induce buyers.
On Monday the NY cotton futures settled higher on investor buying in very thin dealings, with analysts saying a lack of interest and lack of market-moving news may keep trading in fiber contracts quiet this week.
The key December cotton contract on ICE Futures US rose 0.60 cent to close at $1.0492 per lb, trading from $1.035 to $1.0578. It was an inside day for the second session in a row because the range was within Friday's $1.0215 to $1.0488 band. The Friday range in turn was within Thursday's $1.0174 to $1.0639 band.
Total volume traded was a little over 4,500 lots, preliminary Thomson Reuters data showed. That would put it on track as the lowest traded daily volume in over 20 months, according to ICE Futures US data.
On Tuesday the NY cotton futures ended higher on investor buying in light trade, with the slow pace of trade seen likely given the upcoming holiday weekend. The key December cotton contract on ICE Futures US rose 0.50 cent to close at $1.0542 per lb, trading from $1.0364 to $1.07. The range was little changed from the trading band seen the last three sessions. Total volume traded on Monday stood at 5,502 lots, the lowest level traded since December 29, 2009, ICE Futures US data showed.
On Wednesday the NY cotton futures ended slightly firmer on investor buying in another lightly traded session with analysts saying many players appear to have taken off for the holiday weekend. The key December cotton contract on ICE Futures US rose 0.39 cent to close at $1.0581 per lb, trading from $1.046 to $1.0689. It was an inside day since the range was within Tuesday's $1.0364 to $1.07 band. On the month, the market was up almost four percent. Volume on Wednesday was around 7,000 lots, more than 40 percent less than the 30-day average, preliminary Thomson Reuters data showed. On Monday, the total volume traded stood at 5,502 lots, the lowest since December 29, 2009, ICE Futures US data showed.
On Thursday the NY cotton futures ended down slightly on sales by small investors as players tweaked positions before a long weekend, eyeing the formation of several storms in or near the growing state of Florida. The US cotton market is shut on Monday for the Labour Day holiday. The key December cotton contract on ICE Futures US shed 0.03 cent to close at $1.0578 per lb, trading from $1.052 to $1.0723. Volume came to slightly over 8,800 lots, more than a quarter below the 30-day average, preliminary Thomson Reuters data showed.
On Friday, the US cotton futures finished with small gains on buying by small investors in lethargic trade before a holiday weekend. The US cotton market will be shut on Monday for Labour Day. The key December cotton contract on ICE Futures US rose 0.11 cent to close at $1.0589 per lb, trading from $1.0501 to $1.0705. For the week, the contract traded in a range from $1.035 to $1.0723. Thomson Reuters data showed that since mid-August, the contract has traded at a low of $1.0174 hit on August 25 and a high of $1.09 set on August 24. Volume on Friday was over 7,700 lots, more than a third under the 30-day average, preliminary Thomson Reuters data showed.
LOCAL TRADING
Lean business was marked during pre-Eid holiday session on cotton market as buyers and sellers both were in holiday mood. On Monday the official spot rate was unchanged at Rs. 6000, seed cotton prices in Sindh showed no change at Rs. 2300 and Rs. 2500, while phutti prices in Punjab ruled at Rs. 2200 and Rs. 2600. Weary cotton consumers laid hand on merely 5000 bales at prices between Rs. 5600 and Rs. 6000. Besides buyers and sellers in holiday mood, transportation problem was one reason why sale purchase was limited to a few thousand bales. The exporters were also hand tight as export orders were not streaming out offering little courage to go all out to purchase cotton.
On Tuesday not a single deal was struck. KCA kept the official spot rate unchanged at Rs 6000. Seed cotton prices were up, in Sindh at Rs2350-2550 and in Punjab at Rs2300-2600.
POWER, GAS SHORTAGE AFTER EID, REALLY?
The textile sectors already nearly bruised, could not rid of apprehension after Eid holidays, power and gas shortage may linger on. The industry circles pointed out the textile industry in Punjab has suffered from load-shedding for 16 days, that too in winter. The summer months are, it seems, going to be denied gas availability causing approximately about 30 percent production losses amidst dwindling cotton prices world-wide.
When shortages of gas, power and raw material face textile industry naturally apprehend fresh closures, like it has seen since 2007. The textile sector has been considerably upset with the way cotton globally has been fluctuating. When in March cotton prices looked up and higher reaching the top it touched a century back figure. But the consoling $2.197 rate gradually started coming back to today just half of the peak owing clearly to topsy turvy plan of big powers to punish truant states in N Africa and Middle East besides uninvited holocaust in the shape of quake and Tsunami that Japan has still been shaky to come to grip. Such being the global trade and commerce plight, exporters in Pakistan overcoming apprehension is simply encouraging. Authorities should go out of the way to keep travel path absolutely clean and running. After all they are sure shot to deliver much needed earning.
FTO'S HELP SOUGHT TO GET REFUND
Indeed, organisations are created to step up to diffuse disputes cropping up on issues, but there are relevant authorities to resolve problems before they get complicated and harmful. Issue in this case is about payment of refunds of Rs 25 billion collected as taxes and levies under textile policy to underpin their ailing units. Since the crisis seems to have taken ambiguous shape, two chairmen belonging to textile sectors, chairman of Pak Apparel Forum (PAF) and chairman Hosiery Manufacturers and Exporters Association joined together to make the crux solvable with pretty ease.
The two chairmen revealed the ECC had approved the pending refunds, which they made more poignant by referring to government, which passed in the budget, alas! The maximum contribution to exchequer remains deprived of the due return not less than Rs. 25 billion. Addressing to the FTO for the purpose the seekers were politely told the Ombudsman was not reachable.
The relevant question isn't that somebody out of the way to rescue the sinking men. The system should be so streamlined that when the claimers want or the date is ripe the ever-evolving dues should reach in the hand extended for the same. About the missing files, which they made pointed reference is common knowledge and the less words and time is wasted. Let things turn to better, God willing!
SIALKOT FACING UNSCHEDULED LOAD-SHEDDING
That other cities are immune of the menace of load shedding and like ilk, sounds crude and heart rending. Why Sialkot has been privileged, while suffering is universal in this never forward looking God gifted country. This city has distinction of reaching world through exports of sport goods, surgical goods besides unique qualification of building roads and airport without contribution from hand to mouth government.
The city Sialkot attracts for comments, because a little care to build it far more attractive could have matched earning from textile exports. For long need has been forwarded by well-to-do people to give little ease to textile exports some knowledge based replacement was most desirable.
When India practically overtook software business with centre at Bangalore, Dr Attaurrahman employed the best brain in the country but thus far much remains to be wanting. Sialkot which little bothers authorities for big or small needs should not be allowed to face 18-hour unscheduled load shedding.
The Sialkot Chamber of Commerce and Industry (SCCI) president harassed by the deprivation expressed great concern over the unscheduled load shedding. The SCCI chief must have taken pains to approach authorities to tell closure of the industrial feeders has crippled the industrial activity and export industry of Sialkot is on the verge of closure.