Cotton prices show firm profile
LAHORE (April 18 2008): With dwindling numbers of cotton bales held in ready stocks by the ginners from the current season (2007-08) coupled with devaluation of the Pakistani rupee against the United States dollar and generally high prices of sundry commodities around the globe, domestic cotton prices displayed a steady to firm disposition on Thursday.
High class lint sold at Rs 3,600 per maund (37.32 kgs) on last Wednesday. Tight tendency of cotton prices for this season and beyond are also reflected from the sale of 400 bales new crop (2008-09) by a ginner from Sultanabad in Sindh at the record debut price of Rs 3,600 per maund for August 2008 delivery.
Pakistani ginners now hardly hold 600,000 bales of unsold cotton stocks which may mostly be sold out before the end of this month, or barely leave 100,000 bales to 200,000 bales of unsold lint at the beginning of next month. Furthermore, the Pakistani currency has gone down to Rs 64.50 per United States dollar inciting all-round increase in the price of goods and commodities.
Additionally, the booming increase of prices for crude oil, grains and gold in the international market in terms of the United States dollar is having a definitely positive effect on cotton prices at most origins. Therefore, lint prices in Pakistan are riding a record level with propensity of improve further.
Several factors in Pakistan have recently indicated that the economy could tolerate the shocks of the international turmoil in a reasonable way and thus weather the storm with relatively fewer economic problems. Home remittances are showing record receipts while exports of rice show potential of earning of about two billions US dollars.
Snowfall in the northern areas on the mountains and widely spread rains in many parts of Pakistan over the last couple of days have reduced the stress and strains of the water shortage considerably which could have created problem for the cotton crop during the forthcoming summer. Moreover, with water levels in the reservoirs of major dams like Tarbela and Mangla now expected to reach to the brim, supply of power to various industries should also improve during the forthcoming months.
While the domestic textile mills still appear to be struggling for better prospects, increased power supply anticipated for the next season (2008-09) following adequate water supply to hydroelectric projects, better supply of authenticated seeds and government resolve for improved field management of cotton crop with desirable pesticide cover should hopefully rehabilitate the cotton economy of Pakistan remarkably.
Already on last Wednesday 3500 bales of high quality of lint from Khanpur in Punjab were sold at the record price of Rs 3,600 per maund (37.32 kgs). On Thursday lint prices remained steady to tight for both Sindh and Punjab styles. In Sindh, cotton prices reportedly ranged from Rs 3,300 to Rs 3,450 per maund (37.32 kgs), while in the Punjab they are said to have ranged from Rs 3,250 to Rs 3,600 per maund.
The new federal Commerce Minister Shahid Khaqan Abbasi said recently that Pakistan's trade deficit is likely to hit a whopping 16 billions US dollars. The minister is looking for ways and means to enhance the country's exports. His fact-finding mission includes his visit to the concerned departments so that the export policy is reoriented to fill the gap. Obviously, textile industry deserves first and timely attention to streamline its production and augment its export potential which is substantial.
Ahmad Mukhtar, a veteran of politics and a leading industrialist of Pakistan who has been additionally allocated the textile ministry is likely to use all his acumen and expertise to put the textile industry back on the rails to gain large scale employment, enhanced exports and increased earnings of foreign exchange to stabilise the domestic economy.
Shortage of power remains the bane for most of the industry in Pakistan but it took an ugly turn in Multan early this week when thousands of unemployed workers of the power loom industry created civil strife, disturbances and commotion which paralysed the city. The rioters were demanding increase in power supply so that they could run their looms on full capacity. some of the protests including blocking of roads and railway tracks has subsided and the authorities in Multan have reportedly met the power looms association to discuss the law and order situation which had deteriorated early this week.
A joint meeting of the members of the Karachi Cotton Brokers Forum (KCBF) and members of the Brokers Advisory Committee (BAC) of the Karachi Cotton Association (KCA) was held on the 14th of April 2008 under the chairmanship of Naseem Usman to formulate proposals to be sent to the government for inclusion in the forthcoming cotton policy.
Proposals include reopening of the hedge contract for raw cotton under the auspices of the Karachi Cotton Association (KCA) which has the necessary experience and infrastructure for the purpose which it gained over the past many decades.
Furthermore, the members recommended to the government to continue its policy for free trading of cotton which has benefited all sections of the trade.
The members attending the meeting also urged upon the government to increase the production of raw cotton on war-footing and also to look after the quality of cotton. it was desired that the sowing of Bt cotton should be given top priority with all the proper scientific inputs and safeguards to increase the productivity of cotton in the country.
Moreover, government was also requested to plan for keeping a buffer stock of one to two million bales in the country to stabilise local cotton trade which buffer stocks should be handled by the Karachi Cotton Association (KCA) also involving all its licensed brokers.
LAHORE (April 18 2008): With dwindling numbers of cotton bales held in ready stocks by the ginners from the current season (2007-08) coupled with devaluation of the Pakistani rupee against the United States dollar and generally high prices of sundry commodities around the globe, domestic cotton prices displayed a steady to firm disposition on Thursday.
High class lint sold at Rs 3,600 per maund (37.32 kgs) on last Wednesday. Tight tendency of cotton prices for this season and beyond are also reflected from the sale of 400 bales new crop (2008-09) by a ginner from Sultanabad in Sindh at the record debut price of Rs 3,600 per maund for August 2008 delivery.
Pakistani ginners now hardly hold 600,000 bales of unsold cotton stocks which may mostly be sold out before the end of this month, or barely leave 100,000 bales to 200,000 bales of unsold lint at the beginning of next month. Furthermore, the Pakistani currency has gone down to Rs 64.50 per United States dollar inciting all-round increase in the price of goods and commodities.
Additionally, the booming increase of prices for crude oil, grains and gold in the international market in terms of the United States dollar is having a definitely positive effect on cotton prices at most origins. Therefore, lint prices in Pakistan are riding a record level with propensity of improve further.
Several factors in Pakistan have recently indicated that the economy could tolerate the shocks of the international turmoil in a reasonable way and thus weather the storm with relatively fewer economic problems. Home remittances are showing record receipts while exports of rice show potential of earning of about two billions US dollars.
Snowfall in the northern areas on the mountains and widely spread rains in many parts of Pakistan over the last couple of days have reduced the stress and strains of the water shortage considerably which could have created problem for the cotton crop during the forthcoming summer. Moreover, with water levels in the reservoirs of major dams like Tarbela and Mangla now expected to reach to the brim, supply of power to various industries should also improve during the forthcoming months.
While the domestic textile mills still appear to be struggling for better prospects, increased power supply anticipated for the next season (2008-09) following adequate water supply to hydroelectric projects, better supply of authenticated seeds and government resolve for improved field management of cotton crop with desirable pesticide cover should hopefully rehabilitate the cotton economy of Pakistan remarkably.
Already on last Wednesday 3500 bales of high quality of lint from Khanpur in Punjab were sold at the record price of Rs 3,600 per maund (37.32 kgs). On Thursday lint prices remained steady to tight for both Sindh and Punjab styles. In Sindh, cotton prices reportedly ranged from Rs 3,300 to Rs 3,450 per maund (37.32 kgs), while in the Punjab they are said to have ranged from Rs 3,250 to Rs 3,600 per maund.
The new federal Commerce Minister Shahid Khaqan Abbasi said recently that Pakistan's trade deficit is likely to hit a whopping 16 billions US dollars. The minister is looking for ways and means to enhance the country's exports. His fact-finding mission includes his visit to the concerned departments so that the export policy is reoriented to fill the gap. Obviously, textile industry deserves first and timely attention to streamline its production and augment its export potential which is substantial.
Ahmad Mukhtar, a veteran of politics and a leading industrialist of Pakistan who has been additionally allocated the textile ministry is likely to use all his acumen and expertise to put the textile industry back on the rails to gain large scale employment, enhanced exports and increased earnings of foreign exchange to stabilise the domestic economy.
Shortage of power remains the bane for most of the industry in Pakistan but it took an ugly turn in Multan early this week when thousands of unemployed workers of the power loom industry created civil strife, disturbances and commotion which paralysed the city. The rioters were demanding increase in power supply so that they could run their looms on full capacity. some of the protests including blocking of roads and railway tracks has subsided and the authorities in Multan have reportedly met the power looms association to discuss the law and order situation which had deteriorated early this week.
A joint meeting of the members of the Karachi Cotton Brokers Forum (KCBF) and members of the Brokers Advisory Committee (BAC) of the Karachi Cotton Association (KCA) was held on the 14th of April 2008 under the chairmanship of Naseem Usman to formulate proposals to be sent to the government for inclusion in the forthcoming cotton policy.
Proposals include reopening of the hedge contract for raw cotton under the auspices of the Karachi Cotton Association (KCA) which has the necessary experience and infrastructure for the purpose which it gained over the past many decades.
Furthermore, the members recommended to the government to continue its policy for free trading of cotton which has benefited all sections of the trade.
The members attending the meeting also urged upon the government to increase the production of raw cotton on war-footing and also to look after the quality of cotton. it was desired that the sowing of Bt cotton should be given top priority with all the proper scientific inputs and safeguards to increase the productivity of cotton in the country.
Moreover, government was also requested to plan for keeping a buffer stock of one to two million bales in the country to stabilise local cotton trade which buffer stocks should be handled by the Karachi Cotton Association (KCA) also involving all its licensed brokers.
