Gujcot Weekly Report
Posted : January 25, 2021
Market Movement from 07th Dec 2020 to 12th Dec 2020
- This week was Bull dominated week. Market crossed 72 cents level at the start of the week and on Thursday there was double bonanza for bulls. Fantastic export sales and Bullish WASDE attracted new spec buying. Market has opened new range by crossing 74 cents mark for NY March future. NY March future closed with 251 points weekly gain. Technically it has crossed all resistance levels and set for higher range.
- U.S. Export Sales was above 4,00,000 bales a week. Till 3rd Dec, US has committed 1,07,69,107 bales for exports and out of that 47,00,000 bales have already been shipped. USDA raised its US export target to 15 million bales.
- WASDE was also bullish with reduction in production of US by 1.14 M bales and overall world’s production by 2.2 M bales. Increased consumption by 1.58 M bales. Finally, US ending stock decreased from 7.2 M Bales to 5.7 M bales and world ending stock declined from 101 .44 M bales to 97.52 M bales, reduction of just below 4 M bales.
- Chinese futures did not give bullish response.
- Indian physical cotton market moved upwards following uptrend on NY futures. Gujcot spot rate advanced to 41,400 Rs per candy. All India huge arrivals absorbed by CCI and till date CCI has procured 45 lakh bales. Indian mills are well covered. Yarn market also supported for domestic buying. So, market stayed well supported in raw material by CCI and finished material by domestic buyers.
- Declining cottonseed rate also the reason of disparity to ginners.
- All India daily arrivals remained nearly 2,50,000 to 2,70,000 bales a day.
- Daily arrival in Gujarat was nearly 50,000 bales a day.
- Gujcot spot rate remained between 40,750 to 41,350 during this week.
- Indian rupee remained stable between 73.52 to 73.89 against USD.