Gujcot Weekly Report
Posted : August 10, 2020
Market Movement from 06th Jul 2020 to 11th Jul 2020
- NY December gained 136 points W/W. With reduction in US planted area by USDA bullish signal was in the market. NY future crossed 200 day moving average and technical buying started in the market. Market touched new high at slightly below 65 cents before correction and finally closed at 64.31 cents per pound on Friday.
- July WASDE lowered world production by 2.49 million bales mainly as expected in U.S. by 2 million bales. Subsequently world ending stock was reduced by 1.90 million bales.
- Export sales was not impressive but Shipments beat the pace needed to hit the 15.0 million bale target for the outgoing 2019/2020 year.
- Indian monsoon is well in time and satisfactory all over cotton growing states. CCI has slowed down MSP procurement in all major regions. Farmers busy in sowing. Indian cotton sowing is earlier than last year and completed 104.82 lakh hectares till date against 77.71 Lakh Hectares during the corresponding period of last year.
- CCI was also able to sell some cotton in North India.
- With higher stock, Indian market is not able to go up back to back with ICE. So Indian basis have broadened on negative side. Although being the cheapest cotton in the world, India will get better orders from abroad.
- Gujcot spot rate remained between 32,850 to 33,100.
- Gujarat Cotton sowing reached to 18,25,300 hectares.
- All India daily arrivals remained 50,000 to 55,000 bales.
- Daily arrivals in Gujarat was between 15,000 to 17,000 bales.
- Indian rupee remained stable between 74.67 to 75.20 against USD compared to last week.