Gujcot Weekly Report
Posted : August 10, 2020
Market Movement from 27th Jul 2020 to 01st Aug 2020
- NY December recovered from last week’s loss and gained 256 points W/W. Market recovered by better export sales and shipment and weaker dollar. Some fear of crop damage in southern Texas due to Hurricane Hanna also lead speculators for short covering. Overall NY future had supportive week.
- U.S. Export sales and shipment both better and higher than trade expectation. Yet one week’s data to come to close off the season. Shipment will cross the target set by USDA and outstanding sales will be carried forward to the new season.
- Despite volatility in NY Futures, Indian physical market remained stable in very tight range. Gujcot spot rate was stable between 33,100 to 33,200. CCI is trying to offload their cotton but did not receive good response by Indian consumers. Big stock with government, slow demand and expected early new season arrivals turned mindset of the spinners to purchase hand to mouth. Also till now rainfall and cotton crop condition of new crop all over India is very satisfactory.
- Gujarat Cotton Sowing area reached 22,16,411 Hectares on 27th July against last year’s 23,76,074 hectares in the same period which is 6.72% down compare to last year.
- Indian basis are till negative. With some support of stronger Indian rupee basis recovered by 1 to 1.5 cents but still it is in negative area. Despite the cheapest in world, Indian exporters are not able to find big demand. As being the cheapest cotton, some regular demand is there so, India can achieve some better numbers of raw cotton export.
- All India daily arrivals was nearly 20,000 bales.
- Daily arrivals in Gujarat was nearly 10,000 bales.
- Indian rupee remained stable between 74.79 to 74.84 against USD compared to last week.