Actually, most global cotton markets like America and China are also under pressure, while China is still selling from its old stocks. The price at most origins is falling due to higher output expected during the current season, while Indian cotton prices were also steady. Traders added from Karachi that American cotton prices for current futures month have fallen from about 71 cents per pound to almost 67 cents per pound.
Thus better global production of cotton and decreased prices of yarns and other textiles in Pakistan have depressed the domestic cotton economy. Due to more competitive prices, Pakistani exporters are also reported to be buying cotton for various shipments.
Despite better arrivals and recent rains in the cotton belt, brokers claim that the quality of domestic cotton is good. Due to decreased cotton prices, the smaller mills are also reported to have become active. On Thursday, seed cotton (Kapas/Phutti) in Sindh reportedly ranged from Rs 2600 to Rs 2800 per 40 Kgs, according to the quality, while in the Punjab they are also said to have ranged from Rs 2600 to Rs 2800 per maund.
Lint prices in Sindh are generally said to have ranged from Rs 5900 to Rs 6000 per maund (37.32 Kgs), while in the Punjab they reportedly ranged from Rs 6000 to Rs 6100 per maund, according to the quality. In ready business, 5000 bales of cotton from various stations in Sindh sold from Rs 5900 to Rs 6000 per maund, while in the Punjab about 3000 bales were sold from Rs 6000 to Rs 6050 per maund.
On the global economic and financial front, tensions in the Korean peninsula region are gradually easing following the announcement by North Korea that it has no intension to bomb Guam, an American territory. However, as the negative momentum gathers pace following the uncertainties on the socio-political front in America due to sundry pronouncements of President Donald Trump and also his way of running the White House, there is widespread fear that White House is becoming non-functional and is verging on collapse. Thus though the Asian equity markets ended mixed, the European and the American bourses were poised in the negative direction.
The political trouble in America started soon after Donald Trump's ascendancy as the President of America. Soon after his entry into the White House, President Donald Trump announced that he would change the Obamacare legislation. However, the health care provisions existing under Obamacare have not yet been replaced or repealed. In fact, he had promised in his campaigns for the presidency to change or overhaul the health care with new provisions.
Again President Donald Trump had said he would impose travel bans on several Middle East countries which are not being enforced as earlier proposed by him. Similarly, his idea of building a wall on the Mexican border to stop illegal immigrants from entering America has not progressed. Such schemes still reportedly remain essentially in a legal limbo.
Other proposals include reorienting the NAFTA (North American Free Trade Agreement) which includes Canada and Mexico to enlarge regional business co-operation, but president Trump has given no concrete proposals which would lead to increased border trade.
The latest trouble engulfing many cities in America is the clash which occurred between the white supremists and neo-Nazis clashed with anti-far-right protestors. President Trump insisted that "both sides" were responsible for the violent protests in Charlottesville, Virginia. Such a statement by President was denounced widely for which Donald Trump has been largely criticized.
Equity markets were thus poised downwards in both Europe and America. In the meantime, president Trump is facing what has been called as growing isolation. Dow Jones Industrials, Standard and Poor's 500 and Nasdaq all trimmed their gains as top executives abandoned Trump's business panels in protest over his response to the violence in Charlottesville.
Copyright Business Recorder, 2017