Gujcot Weekly Report
Posted : January 25, 2021
Market Movement from 04th Jan 2021 to 09th Jan 2021
- Cotton future market started 2021 with a bang. March futures opened the holiday-shortened trading week slightly up at 78.25 cents per pound and surged to a fresh two year high of 80.93 cents on Wednesday. In fact, the open also served as the low for this week’s trading. March futures settled at 79.77, up 165 points for the week.
- 2020 is now in the rear view mirror. We gladly say good riddance as 2020 was not a good year for many and for many reasons. 2021 brings hope of better future.
- Old-crop March futures has now reached the 80-cent area. Trade is anticipating US crop to be further reduced in upcoming WASDE on 12th January. U.S. Export Sales and shipment both are excellent so speculators hold the long position. Also due to negative return in bonds fund’s money diverted in commodity so market has grip in uptrend.
- Though U.S. Export Sales was lower compare to last four weeks, market ignored it.
- Indian physical market also in up move and rate moved toward 43,500 for Shankar-6 cotton. CCI has procured nearly 81 lakh bales. CCI also sold handsome quantity during this week.
- Now private ginners are able to purchase above MSP rate so procurement of CCI will slow down while private liquidity will increase. Cottonseed rate also remained supportive to ginners.
- Indian basis are attractive so, MNC and exporters are active in buying. Mills are well covered so hesitant to buy on higher rate.
- Indian spinners are enjoying their best time by spinning at good profit.
- All India daily arrivals now declined from 3 lakh to nearly 2,50,000 to 2,70,000.
- Daily arrival in Gujarat was steady between 55,000 to 60,000 bales a day.
- Gujcot spot rate remained between 42,850 to 43,550 during this week.
- Indian rupee remained stable between 73.02 to 73.32 against USD.