Gujcot Weekly Report
Posted : December 02, 2020
Market Movement from 19th Oct 2020 to 24th Oct 2020
- ICE cotton futures were down by 64 to 75 points on Friday, but ICE Dec contract gained 137 points during the week. From Friday to Friday, the Dec to March carry fell 9% to 0.58 cents (0.08%). With some profit taking on Friday market gave up some gain but still maintained weekly green closing. This was consecutive third week of upswing. Bull run was started and dominated by China’s ZCE futures.
- U.S. Export Sales were decent as more than 2 lakh bales of sales mainly to Pakistan and China. Shipment also better and on target to reach estimates of USDA.
- Indian physical market was stable to firm. CCI was active in North India where arrival is on the peak. Due to Bull market CCI was able to sell handsome quantities with continuous increasing daily offer prices. Still CCI has more than 55 lakh bales to sell of 2018-19 and 20-19-20 season. Ginners in India are long with the trend.
- Mills are regularly covering cotton due to good demand yarn and processing parity.
- Exporters are also getting good orders from China, mainly of old CCI stock cotton.
- Indian basis is still attractive but at higher rate global demand is slow.
- This week Indian basis remained between -1.86 to -0.61 cents.
- Gujcot spot rate remained between 40,100 to 40,550 during this week.
- Daily India arrival crossed 1 lakh bales mark to nearly 1,20,000 bales a day.
- Daily arrival in Gujarat was around 20,000 bales during this week.
- Indian rupee remained stable between 73.37 to 73.62 against USD.