Gujcot Weekly Report
Posted : February 23, 2021
Market Movement from 26th Oct 2020 to 31th Oct 2020
- The ICE Dec cotton contract gave up 237 points for the week ending Oct 30, finishing at 68.92 as the Dec – Mar switch weakened to (86). After touching high of 72.63 market sharply turned downside. ICE Dec contract lost 237 point during the week but still managed 313 points monthly gain for Oct. ICE cotton was lower on the week despite improved US export data, on strengthening US currency, COVID concerns, the lack of a US economic stimulus bill, weakness in equity markets, and on scheduled index fund rolling. Risk-off attitudes ahead of next week’s national election probably incited some market participants to book profits and move to the sidelines.
- U.S. Export Sale was decent and well ahead to achieve target set by USDA.
- Next two weeks will remain more volatile with US election and WASDE.
- In India till date CCI has procure nearly 5 lakh bales of new crop. Due to availability in open market mills are now not interested to buy CCI cotton so sales of CCI was negligible during this week.
- Indian physical market also corrected from high of 40,600 to now below 40,000. With hype of MSP purchase and some disparity ginners are long and trade is slow.
- With hike in Covid-19 cases and lockdown in Europe, dollar surged so Indian rupee weaken to 74.50 mark. It remained in 73.70-74.10 range at closing.
- This week Indian basis remained between -2.94 to -0.24 cents.
- Gujcot spot rate remained between 39,700 to 40,100 during this week.
- Daily India arrival remained nearly 1,30,000 to 1,40,000 bales a day.
- Daily arrival in Gujarat was around 25,000 bales a day.