Gujcot Weekly Report
Posted : August 10, 2020
Market Movement from 29th Jun 2020 to 04th Jul 2020
- On Tuesday, USDA released the Acreage Report, which is meant to reflect what producers actually planted this year the report was a shocker for the cotton market. In most years, the Acreage and Prospective Plantings Reports have little variation. Whereas this year the Prospective Plantings was anticipated 13.70 million cotton acres, whereas the Acreage Report reported only 12.19 million acres of planting, 11% drop. Publicized analyst estimates had not gone lower than 12.5 million acres, and the average was 13.2 Million Acres. Needless to say, the lower plantings implied a sharp drop in US production potential, which ignited this week’s rally. NY future December gained 345 points W/W or above 5%.
- U.S. Export sales were mainly dominated by China. Shipment was also good but not enough to meet the USDA export target.
- Indian physical market follows NY rally but because of weight of domestic arrival and higher stock it was not able to sustain. Gujcot spot rate touched nearly 33,000 range.
- Strong rally in NY has put Indian basis more negative. But strong rupee has compensated some of the spread and Indian basis remain negative to NY December.
- Despite attractive basis Indian export is very slow.
- CCI try to give attractive offers, but still they were able to sell very negligible quantity.
- Gujcot spot rate remained between 32,800 to 33,000.
- All India cotton sowing till 02nd of Jul was 91.673 lakh hectares against 45.850 lakh hectares last year on the same time.
- Gujarat Cotton sowing reached to 15,71,900 hectares.
- All India daily arrivals remained 60,000 bales.
- Daily arrivals in Gujarat was between 22,000 to 25,000 bales.
- Indian rupee remained strong between 74.63 to 75.59 against USD compared to last week.