Traders said domestic seed cotton prices have risen sharply so that in both Sindh and Punjab Kapas/Phutti prices ranged higher on Thursday Rs 2800 to Rs 3500 per 40 Kgs according to the quality.
Similarly, the lint prices in Sindh are said to have ranged from Rs 6400 to Rs 7700 per maund (37.32 Kgs) on Thursday on an ex-gin basis, while in the Punjab they reportedly ranged from Rs 6500 to Rs 7500 per maund, according to the quality.
With New York cotton futures prices having rise further to more than 79 cents per pound recently, the prices of lint have risen globally. Traders said in Karachi that Pakistan may harvest a crop of 11.5 million bales (155 Kgs) during the current season (2017/2018).
Yarn prices have also shown increase in recent months while the large spinning units are said to be faring much better. If the cotton demand continues to increase, local lint prices could conceivably rise to Rs 8000 per maund (37.32 Kgs).
In ready lint cotton sales reported on Thursday, the upward drive was maintained. Brokers reported from Karachi that 400 bales of cotton from Gupchani in Sindh were sold at Rs 6800 per maund (37.32 Kgs), while 400 bales from Nawabshah sold at Rs 7000 per maund. In the Punjab, 200 bales from Khanewal sold at Rs 7075 per maund, while 600 bales from Rahimyar Khan sold at Rs 7500 per maund in a very firm market.
Traders said that Karachi Cotton Association (KCA) held a meeting on Thursday to which the representatives of the All Pakistan Textile Mills Association (APTMA) and the Pakistan Cotton Ginners Association (PCGA) were also invited to discuss problems of increasing the cotton crop in the country, improving the quality of cottonseed and also to increase the size of the cotton crop in the country.
On the global economic and financial front, the investment climate in America continued to rise to its highest level in a decade and most analysts and investors appeared to vouch for higher gains during the incoming calendar year viz. 2018. In the immediate sense, the economic experts cited growing hope concerning the health of the United States economy following the recent passage of the tax cut legislation which has boosted the morale of the investors.
In a write up by Katia Dmitrieva for Bloomberg Markets, it has been reported that the consumer comfort in America has jumped to its highest level since September 2017. Furthermore, the unemployment figure is close to a seventeen year low level and the real estate prices have increased.
Analysts have further noticed that besides the record-high equity prices which have risen steadily but surely, the volatility on the leading bourses around the world have reduced under the circumstances, the global economic growth keeps strengthening and added optimism continued in diverse economic sectors across many of the global markets. However, we have also been warned off and on that there is no time to remain complacent unmindfully. The incoming year viz 2018 could change the economic direction around the world negatively without providing a sound warning.
The much feared bubble on the stupendously high equity markets may yet turn into a devastating reality. The positive economic leadership being provided by the United States and being reinforced by the European Union could falter and thus with draw the succour they are providing to several other world economies.
The appearance of one or more adverse events or signals in many vulnerable countries like China, Brazil, Venezuela, Russia, Iran, South America or the Middle East could topple the seemingly calm and continued economic growth in America, in United Kingdom.
Besides a much feared property and banking bubble in China, there are several other tripping points which could topple the global economy. The missile rattling with the North Korean nuclear programme continuing in the Peninsula and is hazardous, the Brexit talks have yet to settle down to a satisfactory solution.
With these problems continuing to threaten the global financial and political order, there appears no reason to become complacent and look forward to the resumption of smooth global economic growth.
Copyright Business Recorder, 2017