Monthly Rate Movement Report – Jul 2020
Posted : September 19, 2020
Dear All Cotton Friends,
In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciated their humble service to the trade. Gujcot Team is giving daily closing of Indian and foreign futures rates.
In this report we have provided Following Rates during the month.
- MCX Cotton Daily Closing Rate
- USD-INR Exchange Rate Closing
- NCDEX and MCX converted into Rs. Candy Rate
We hope it will be useful to all the stake holders of Textile Value Chain.
- During the month of July NY Dec Future remained volatile between a big range of 60 to 65 cents. Political tension between US China, Texas weather, WASDE lowered US cotton planting were main events of the July.
- After bullish WASDE on 10th NY Dec closed at 64.31. USDA reduces US planting area estimate and signaled lower crop of US. Also, hot weather in Texas added fuel.
- U.S. Export sales were mix with some cancellations in middle weeks brings some bear trend but China has continued to fulfill phase one of trade deal and shipment to China also continued which helped US to reach export target.
- As Export sales commitment is crossed 17.7 million bales, so remaining will be carried forward to new season thus new season commitment of 3.5 million bales added by nearly 2.5 million bales carried forward commitments. So new season will start with 6 million bales outstanding sales. Shipment will cross USDA target.
- China has opened reserve cotton sales and till today 100% of offered quantity has been sold, which shows good buying interest by domestic consumers.
- In India CCI booked 7 lakh bales in one day record sales but that was only main sales with bulk discount. CCI still offering daily sales but no buying interest witnessed from consumers. CCI trying to export cotton to Bangladesh and Vietnam markets but still no news of actual deal.
- Disappointed ginners are offloading high cost old stock now. Daily new arrivals and stock selling fulfill near term requirement of spinners. Still Farmers in Maharashtra and Gujarat are holding old crop Kapas in good quantity. During July arrivals remained good and local spinners were able to procure cotton at lower rate.
- With good arrivals, Indian physical market remained steady in tight and small range. Gujcot spot rate of 29 mm remained stable between 32,850 to 33,200. Though NY future remained volatile in triple digit during July but Indian physical market did not follow back to back.
- Indian basis remained attractive with stable spot rate. With attractive Basis Indian exporters were able to secure good export orders in all type of variety. Indian basis was the lowest on 8 July at -8.3 and the highest on 24 July at -3.51. First time in history Indian basis remained negative during the off season.