On the global cotton scene, prices in U.S. which were on the easy side have now increased, but Indian cotton prices which were on the steady side have now declined. Chinese cotton is also now on the lower side.
Yarn and general textile prices were steadier, but business reportedly remained slow. Most of the current crop seed cotton (Kapas/Phutti) has been sold out.
In the ready cotton business, the general price idea for lint from Sindh is said to have ranged from Rs 6500 to Rs 7000 per maund (37.32 Kgs) on Wednesday, according to the quality. In the Punjab, lint prices reportedly also ranged from Rs 6500 to Rs 7000 per maund.
Till Wednesday evening, ready sales of 400 bales of cotton from Daharki in Sindh were said to have been sold at Rs 6975 per maund (37.32 Kgs) while 400 bales from Rahim Yar Khan in the Punjab reportedly sold at Rs 7000 per maund. Another 1000 bales from Rahim Yar Khan were said to have been sold at Rs 7075 per maund. Decrease in price was also reported by Rs 3 per kilogramme for polyester fibre.
On the global economic and financial front, the traditional order is gradually eroding with nothing planned or projected to replace it systematically. While the world faced the great recession starting 2008/2009, which has not yet been remedied or replaced in a coordinated fashion globally, rightism, isolationism, breakup of existing and established modes of universal economic functioning have not yet been put in place.
Being the world's largest economy, the United States was expected to show the way to remedy and rehabilitate the continuing and growing anarchy and waywardness of the wobbly global economy. Then came last year's presidential elections in America (2016) which put Donald Trump at the helm of affairs in America. Unfortunately, besides the traditional political differences between the two leading parties, viz the Democrats and the Republicans, the reported internal differences within the Republican Party has landed America into disunity. Many observers and analysts now deem America as a divided nation.
Presently, the American economy is facing an extreme economic pressure in its retail business and the proposals to levy border taxes. Another item bothering the American economy is the sharp drop in crude oil prices. Moreover, several investors around the world feel that President Trump may be unable to implement his economic policies formulated during this campaign period; namely he will not be able to deliver as promised during the presidential campaigning period last year.
One of the results of the prevailing economic uncertainty around the world is demonstrated by the sharp decline in equity prices since last couple of days with Wall Street having suffered its worst day of declines.
Since the beginning of this year, both sides of the Atlantic have seen sharp declines of equity values this week which has also travelled to most other parts of the world.
With shares facing a notable downturn, bank equity values have also slipped, though earlier these very banks assisted the investors to propel shares prices to sky-high levels. Investors are now asking if president Trump will be able to deliver the promised tax cuts. President Trump is reported to have laid out one trillion dollars worth budget proposals to boost military spending and building of the border wall with Mexico. In this regard, both the Democrats and the Republicans are said to be critical of these plans.
On the global economic scene, China has reported its first monthly trade deficit in three years because the imports surged while the exports declined leading to a trade deficit of Dollars 9.2 billion for the month of February 2017.
According to the International Monetary Fund (IMF), India's economic growth was 6.6 percent compared with china's 6.7 percent. This slowdown is said to be result of the currency invalidation resulting in cash shortages which disrupted spending on a sizeable scale.
Copyright Business Recorder, 2017