Gujcot Weekly Report
Posted : October 24, 2020
Market Movement from 05th Oct 2020 to 10th Oct 2020
- This week was Bull dominated week. NY December gained 182 points during this week. Fear of damage due to Hurricane Delta and Weaker dollar were main reasons for the Bull run. Before WASDE NY December climbed to new high 68.68. Trade anticipated USDA to reduce U.S. crop to below 17 million bales but USDA almost maintained same crop as previous month which disappointed speculator. NY December closed at 67.64 after reaching new high.
- WASDE reported increase in world consumption and lower slightly lower production and lowered 2.71 Million bales ending stock on world cotton balance sheet but still annual production is higher than annual consumption, which led to higher closing stock than previous year. As world’s stock to use ratio is very high so fundamentals are bearish but due to some recovery in economy and rates are at lower levels so players are optimistic.
- US Export Sales was slightly lower and China did not buy in big numbers because of holidays. But overall, it is beyond required pace to meet the USDA target.
- In India CCI started procurement in some North centers and will starts buying in other parts in November. CCI has put target to buy 1.25 crore bales for current year. In old crop CCI gradually increased rates and now it is higher than current market rate so they are not able to sales big quantity.
- Indian new crop rate was higher this week. MNCs and Exporters were active buyers backed by higher NY Futures.
- Indian arrivals now crossed 60,000 bales as North and Gujarat are main centers.
- Gujarat arrivals are nearly 12,000 to 15,000 bales a day. Next week it will increase.
- Higher NY has improved Indian basis.
- Gujcot spot rate remained between 36,750 to 37,200 during this week.
- Indian rupee remained stable between 73.13 to 73.45 against USD compared to last week.