USDA estimates to push up global cotton prices

By Seshadri Ramkumar
The United States Department of Agriculture (USDA) on Tuesday, November 9th projected lower global cotton production, consumption and ending stocks for 2010/11. The supply constraint was greeted by the market with a 500 point upward rally in the New York ICE Futures for December shipment. The New York ICE Futures settled at $1.512/pound with an increase of 5 cents since last settlement. >>>>> More

Cotton Prices Hit Record Highs; Shortage Feared

Cotton prices soared to a nominal record high on Friday amid heavy buying in China, the world’s largest importer, and disappointing crops in major producing nations including Pakistan.

The rise in the price of cotton will reverberate through the textile industry, forcing clothing companies to either pass the increase onto the consumer or face lower margins. While the impact is likely to be muted on high-priced clothes, it could be more noticeable in cheaper items such as t-shirts and underwear.

Clothing companies including UK-based Next and jeans maker Levi Strauss & Co have already announced price hikes due to rising cotton costs.

Commodity News Snapshot-Pakistan

THE RUPEE: all-round slide

KARACHI (September 28, 2010): All-round slide was seen on the currency market on Monday due to strong demand for the greenback, dealers said. The rupee extended the overnight fall, losing five paisa more versus dollar for buying at 86.02 and shed seven paisa for selling at 86.08, they said. In the first Asian trade dollar edged up from five-month lows as euro ran into profit-taking, and it dug in against yen as intervention jitters lent support.

 
Floods destroy cotton worth Rs 74 billion in South Punjab

MULTAN (September 28, 2010): Thousands of farmers of south Punjab would be forced to come on roads and protest against government because floods had played havoc in 450 villages of Muzaffargarh and Rajanpur district and their 2 million bales of cotton worth Rs 74 billion has destroyed.

KCA raises spot rate to Rs 7,150 in stable trend on cotton market

KARACHI (September 28, 2010): Firmness prevailed on the local cotton market on Monday as prices recovered due to short supply and high demand, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 300 to Rs 7150, they said. In the ready business, nearly 10,000 bales of cotton changed hands between Rs 7100-7300, they said.

Ban on gur export to Afghanistan sought: government asked to import 0.5 million tons of raw sugar for mills

KARACHI (September 28, 2010): The Pakistan Sugar Mills Association (PSMA) has asked the government to import 500,000 tons of raw sugar and impose complete ban on export of gur (raw sugar) to overcome likely sugar crisis in the country. In a letter, exclusively available to Business Recorder, PSMA Chairman Iskander M Khan has requested the Planning Commission to allow import of 500,000 tons of raw sugar and impose a ban on export of gur for avoiding another crisis.

Generating funds to open LCs: TCP directed to auction 50,000 tons of sugar in open market

ISLAMABAD (September 28, 2010): The Trading Corporation of Pakistan (TCP) has been directed by the federal government to auction 50,000 tons of imported sugar in the open market to generate funds for opening of letters of credit (LCs) for the remaining contracted quantity of sugar, sources close to Secretary, Industries, told Business Recorder here on Monday.

 

Need to maintain wheat production, reserves emphasised

LAHORE (September 28, 2010): Besides achieving self-sufficiency in wheat production, Pakistan should also maintain its reserves to tackle food problems during natural calamities. This was stated by Dr Noor-ul-Islam, Director General Agriculture (Research), AARI while addressing a meeting of agricultural scientists, held to finalise Annual Research Programme of Wheat 2010-2011.

 

Bullion Rates

KARACHI (September 28, 2010): Gold and silver rates in rupees per 10 grams prevailing in major cities on Monday (September 27, 2010).

 

International News

Malaysian palm oil at 15-month high

KUALA LUMPUR (September 28, 2010): Malaysian palm oil hit a 15-month high and other global vegetable oil markets rallied on Monday as traders bet on top buyers China and India snapping up more cargoes in the months to come. An industry conference in Mumbai forecast India will buy a record amount of vegetable oil in the new marketing year and China's Ministry of Commerce revised up its estimate for September soy imports.

 

Gold hits record at $1,300 an ounce

·         Silver at 30-year high; copper stalls ahead of $8,000

LONDON: Gold powered to a record high at $1,300 an ounce on Monday, with investors pouring more cash into the market on global economic health worries and the possibility of further quantitative easing to stimulate growth.

Oil falls below $76 a barel

LONDON: Oil fell below $76 a barrel on Monday, tracking weak stock markets, as the outlook for global economic recovery and future energy demand remained uncertain.

US MIDDAY: sugar soars

NEW YORK (September 28, 2010): Raw sugar futures closed at a seven-month high for the second straight day on Monday, while arabica coffee and US cocoa also finished higher. The spot October raw sugar contract surged 0.65 cent or 2.6 percent to close at 26.09 US cents per lb, with most-active March up 0.58 cent to end at 24.98 cents, the highest settlement for the second position since February.

Commodity News Snapshot-Pakistan

 Wheat procurement: 'Federal government has to pay Rs 1.965 billion to Punjab food department'

LAHORE (September 24, 2010): Punjab Government purchased 5.781 million metric tons wheat during previous year out of which 2.5 million metric tone wheat was purchased for Federal Government and stored in the go downs of Punjab food department.

THE RUPEE: dollar inches up

KARACHI (September 24, 2010): Rates were almost unchanged on the currency market on Thursday due to easy supply of dollars, dealers said. The rupee slipped versus dollar, losing one paisa for buying at 85.90 and shedding two paisa at 85.95 for selling, they said. In the fourth Asian trade US dollar was on the defensive as speculation that the Federal Reserve will soon start printing more money drove down Treasury yields and kept the greenback pinned near a five-month low on euro.

Steady arrivals push rates lower despite hectic buying on cotton market

KARACHI (September 24, 2010): Steady phutti arrivals pushed prices lower on the cotton market on Thursday in process of hectic buying from mills and exporters, dealers said. The Karachi Cotton Association (KCA) official spot rate was left at the overnight level at Rs 7,250, they said.

Cotton prices lose sizeably

LAHORE (September 24, 2010): Cotton prices witnessed further losses as mills are only buying their immediate requirements and are looking for fibre values to temper down. This week, lint prices kept slipping after reaching near record levels on last Monday. This attitude of the local market also appears to be in tune with the cotton futures market in New York (ICE) which reached fifteen year peak levels on last Tuesday but fell on Wednesday. 

Gold, silver prices remain unchanged

KARACHI (September 24, 2010): Gold and silver prices on Thursday remained steady at record highs of Rs 41, 150 and Rs 620 per tola on the local market, respectively, traders said. "Gold prices on the global market slipped to 1292 dollars an ounce today as the precious metal was quoted 1993 dollars on Wednesday, helping the local market remain unchanged at Rs 41, 150 per tola," said a leading trader.

International News

Malaysian palm oil futures barely moved

KUALA LUMPUR (September 24, 2010): Global vegetable oil markets made a little headway on Thursday on concerns over erratic weather curbing grain harvests across the globe. Traders are shifting their focus to a strengthening weather formation known as La Nina, which may affect the upcoming South American growing season for wheat, corn and soybeans.

US MIDDAY: sugar rises

NEW YORK (September 24, 2010): ICE raw sugar futures erased early losses on Thursday within sight of a seven-month peak, supported by concerns over global supply tightness, while arabica coffee and cocoa edged higher. Raw sugar futures remained below Monday's seven-month high of 25.60 cents a lb, basis front month.

Gold holds firm after record high run, eyes $1,300

LONDON: Gold held near record highs on Thursday, eyeing a breach of $1,300 an ounce, while silver flirted with 30-year peaks as the threat of currency devaluation lifted interest in the metals as a safe store of value.

Oil falls to around $74 a barrel

LONDON: Oil fell to around $74 a barrel on Thursday after US data showed continued labour market weakness in the world’s biggest oil user, where fuel inventories have swollen to record levels.

Commodity News Snapshot-Pakistan

105,000 tons of sugar: TCP unable to open LC

Despite finalisation of sugar import contracts a month ago, the Trading Corporation of Pakistan (TCP) has been unable to open Letter of Credit (LC) for import of 105,000 tons of sugar because of shortage of funds. Sources told Business Recorder on Tuesday that at present the corporation is facing acute shortage of some Rs 4 to 5 billion to open LC of the last tender.

Sugar price increased by Rs five per kg in Peshawar

In less than a month's time, the price of sugar has been increased by Rs 5 per kilogram at the wholesale market in the provincial capital. Two weeks ago, the price of a 50-kilogram sack of sugar was Rs 3,840, which is now being sold at Rs 4,030. Similarly, sugar was being sold at Rs 76 per kg in the wholesale market and has mounted to Rs 81 per kg.

Provinces yet to announce cane support price: crushing may not start from October 1

Although, the country is already facing shortage of sugar due to low production of sugarcane crop last year, the provinces seem reluctant to announce the minimum support price for the crushing season 2010-11, which according to Sugarcane Factories Act 1950 should commence from October 1.

Major portion of allotted wheat quota: Lahore, Rawalpindi flour millers asked to lift from nearby cities' godowns

Punjab food department has asked the flourmills of Lahore and Rawalpindi to lift the major portion of their allotted wheat quota from the godowns situated in nearby cities at their own expense.

Wheat prices register increase

KARACHI: Without any plausible reason wheat prices have surged in the open market of Karachi in the post-Eidul Fitr period creating apprehension among consumers regarding increase in flour rates during the next few days.

THE RUPEE: all-round fall

All-round decline was seen on the currency market on Tuesday as a result of higher demand for the US dollars, dealers said. All the markets reopened after a 4-day closure, including banks, so the rupee was able to retain its outgoing week level versus dollar and euro, losing modestly in both interbank and open market, analysts said.

Over two million cotton bales destroyed by floods: Aptma

KARACHI (September 15, 2010): While expressing his views in connection with the damage to the cotton crop as a result of floods, M. Yasin Siddik, Chairman APTMA Sindh-Balochistan Region said that before the floods Pakistan was expecting a bumper crop of 14 million bales compared to 12.8 million bales produced last year.

Upward trend prevails on cotton market in post-holidays session

Upward trend was seen on the cotton market on Tuesday during the post-holidays session, dealers said. The Karachi Cotton Association (KCA) official spot rate was jumped by Rs 150 to Rs 6,550, they said. In the ready business, prices went up sharply and nearly 6,600 bales of cotton changed hands between Rs 6600-6750, they said.

Crops over 6 million acres in 11 districts of Punjab damaged

Crops over more than six million acres in 11 districts of the Punjab province have been damaged by the flood and a loss of more than Rs 87 billion has been suffered. This has been informed at a meeting chaired by the Punjab Chief Minister Shahbaz Sharif here on Tuesday to review a proposed relief package for the growers who suffered losses due to the flood.

Sindh estimates Rs 446.8 billion damage to agriculture, infrastructure

Sindh government has estimated Rs 446.8 billion damages to agriculture and infrastructure in the province by the devastating floods. The provincial government would provide interest-free loans to the flood-hit people of severely affected districts for agricultural rehabilitation. So far the provincial government has disbursed some Rs 2 billion in flood-hit areas of the province to provide food and medical treatment to the survivors.

Commodity News Snapshot-Pakistan

Cotton prices stable despite conflicting reports on crop damage

Trading in cotton sustained despite fluctuating prices to meet the orders in hand making a balance. The spot rate leap was restricted, which opened unchanged at Rs 6300, in trading process it enhanced by Rs150 at Rs 6450 and week closing was seen at the same level on August 28,2010.

Bulls command, control cotton markets

Peak of the monsoon rains and floods is over and monsoon weather is on its last leg. However, after effects of the inclement weather would be there for longer time. Continued humid weather and growth of unwanted weeds, vegetation and grass in the fields may prompt attacks of plant pests and diseases in next month.

Import of pulses witnesses sharp decline of 22 percent

The country's import of pulses has witnessed a sharp decline of 22 percent in July 2010, which the importers attributed to soaring global prices, while flood continues to ravage standing crops. "Cost of pulses has posted more or less 50 percent increase globally and subsequently locally," said President Karachi Chamber of Commerce and Industry (KCCI), Abdul Majeed Haji Muhammad

Commodity News Snposhot -

National News

Government faces $25 million loss due to delay in sugar import: Senate body informed

ISLAMABAD (August 27, 2010): Senate Standing Committee on Industries and Production on Thursday was informed that Pakistan has faced 25 million dollars loss due to delay in the import of sugar. The Committee was also informed that Pakistan can face 19 million dollars loss in future if sugar is not imported in time.

Wheat damaged by rain, floods being auctioned today

LAHORE (August 27, 2010): The Punjab Food Department will be holding auction for wheat affected due to rain and flood waters at its different storage centres on August 27 (Friday). Sources in the provincial food department told Business Recorder here on Thursday that earlier the auction was scheduled for August 25, but the department did not receive any suitable bid.

Cotton prices avert sharp fall due to fresh partial rains in Sindh, Punjab

KARACHI (August 27, 2010): More rains in some parts of country, helped cotton prices halt sharp losses amid good trading, dealers said on the cotton market on Thursday. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 6,450, they said. In the ready business nearly 11000 bales of cotton changed hands between Rs 6350-6800, they said.

Government urged to take preventive measures to save cotton crops

LAHORE (August 27, 2010): Chairman Pakistan Cotton Forum (PCF) Seth Muhammad Akbar has asked the government to take urgent precautionary measures to save cotton crops from further damage. He said the cotton crop in Punjab has entered into its most crucial phase where picking of each extra boll would matter. Therefore, timely preventive measures are required to save the cotton crops.

Cotton market remains steady

LAHORE (August 27, 2010): Barring a short-lived spike early this week which later petered out, cotton prices have more or less remained steady over the past one week or so. Some volatility creeps in and the market becomes fidgety due to uncertainty bred by rains and floods of gargantuan proportions which have created chaos and havoc over a large part of the country since last one month.

Flash floods destroy crops worth Rs 72 billion

KARACHI (August 27, 2010): Besides displacing millions of people and loss of the lives and property, the current floods have caused a loss of at least Rs 76.067 billion to the standing crops in the Sindh so far, it is learnt.

THE RUPEE: dollar marginally up

KARACHI (August 27, 2010): Slight fluctuations were seen on the currency market on Thursday in process of trading, dealers said. The rupee shed four paisa against dollar for buying at 85.64 and it also slid by two paisa for selling at 85.67, moneychangers said.

International News

Malaysian palm oil rebounds

KUALA LUMPUR (August 27, 2010): Malaysian crude palm oil futures rebounded on Thursday from one-month lows hit the previous day due to technical buying and firmer oils markets. Crude oil rose for a second day in Asian hours as investors bought back into the market after it hit 11-week lows, but analysts said the fundamental outlook was still bearish with ample stocks to cover any rebound in demand.

US wheat futures fall to one-week low

CHICAGO (August 27, 2010): US wheat futures fell 4 percent to their lowest level in a week on Wednesday on a wave of technical selling after Egypt bypassed US supplies in its latest purchase, traders said. "I think its a technical blow-off," said Mike Krueger, president of The Money Farm, a grain market advisory service near Fargo, North Dakota. "When wheat goes, it goes in a hurry. It is running into these sell stops and it just blows right through them."

Gold steadies after US jobless claims fall

* Copper rallies, helped by a weaker dollar

LONDON: Gold steadied on Thursday, having hit its highest level in two months earlier in the day, after US unemployment data beat expectations, boosting the dollar and other risk-linked assets such as equities.