Brokers said in Karachi that seedcotton (Kapas / Phutti) prices were reduced to the range of Rs 2,400 to Rs 2,700 per 40 kgs in Sindh while in the Punjab they were said to have extended from Rs 2,500 to Rs 2,800 per 40 kilogrammes. Lint prices in Sindh also ranged lower from Rs 5,400 to Rs 6,100 per maund (37.32 kgs), while in the Punjab they are said to have ranged from Rs 5,850 to Rs 6,100 per maund.
The Pakistan Cotton Ginner's Association (PCGA) has just released its seedcotton arrivals report for the current year (August 2012 - July 2013) showing arrivals at the ginneries till December 15, 2012 at 10,768,861 domestic size bales as compared to last year's 11,036,018 domestic size bales for the same period from which local mills are reported to have lifted 8,853,314 bales, exporters 171,946 bales where as the ginners are still holding 1,743,601 bales of unsold cotton with them in both loose and packed form.
Traders said on Thursday that cotton output in Pakistan this year (August 2012 - July 2013) may range from 13.5 million to 14 million domestic size bales while the mills may consume between 15 and 16 million bales. Exporters may be able to export from half a million to one million bales while the mills may needfully import from two to 2.5 million bales.
Yarn output in Pakistan remains active because demand for yarn is said to be tight. Thus most mills remain operative from which several are spinning coarser counts of yarn. In Punjab textile activity is comparatively less because of gas and power shortages. In Sindh, 200 bales of cotton from Shahdadpur and 400 bales from Mirpurkhas both are said to have been sold at Rs 5,400 per maund. In the Punjab, 1,000 bales from Khanewal reportedly sold at Rs 6,100 per maund.
On the global economic and financial front, all eyes are focused on the deliberations taking place between President Barrack Obama and United States Speaker of the House of Representatives John Boehner who have been having an extensive tete-a-tete on the issue of the "fiscal cliff". The idea is how to modify, amend or change the present legislation which will automatically impose Dollars 600 billions of tax increases and spending cuts from the 1st of January, 2013. Such an eventuality is expected to slow down economic growth and lead to a recession in the United States.
Reports emanating from Paris say that it is not only America which will face a serious economic downturn, but imposition of taxes and cuts in government spending in the USA will have a viral effect on the entire global economy sending it into a tailspin. AFP informs from Paris that continuation of talks without concrete results could lead to lowering the ratings of the USA below its current top standing.
While most observers believe that eventually an agreement between the Republicans and the Democrats in the United States will be finalised, but many economic stalwarts, financial gurus and the public at large is getting desperate due to the delay in the compromise talks on the "fiscal cliff". A bipartisan and timely decision on the "fiscal cliff" issue is absolutely essential without further loss of time.
As it is, it is not only the United States which is suffering a continual slowdown of its economy, but Germany, France, Italy, Greece, Portugal, Japan, South Korea, Brazil, India and most other countries face a critical slowdown in their economic performance. Procrastination and infighting in the American political arena are unnecessarily delaying a fair, reasonable and timely deal on the "fiscal cliff" issue. The bosses sitting at Capitol Hill should now show their true grit and finalise the "fiscal cliff" issue without further loss of time.
A recent report by the CNN broadcaster has informed that after the earlier progress seen in the "fiscal cliff" negotiations, fears have arisen that President Barrack Obama and House Speaker John Boehner clashed on the issue which could lead to a slowdown. President Obama is said to have pleaded with the Republicans that they should not target him personally but look at the larger interest of the country.
Till now, most equity markets have seen a commendable rise in the values of shares and presumed a settlement in the "fiscal cliff" between the President Obama and the Republicans as a foregone conclusion. Now that the deadline for the settlement of the "fiscal cliff" looms large on the horizon, viz 31 December, 2012, it will only be sagacious if further delay in its finalisation is not made in order to avoid a global recession.