Gujcot Weekly Report
Posted : February 26, 2021
Market Movement from 25th Jan 2021 to 30th Jan 2021
- Cotton futures had its worst week in quite a while. March futures prices fell four out of five trading sessions from the high on last Friday at 81.56 cents per pound to Thursday’s low at 79.85 cents per pound. Some recovery was seen on Friday and closed the week at 80.64 cents per pound with 92 points weekly loss.
- As March option expiry gets closer, funds started to roll over in May future. Some liquidation of speculators gave path to stop uptrend.
- Export sales and shipment were both decent but market ignored it. Total sales crossed 13 million bales while shipment touched 6.7 million bales well ahead of required pace to achieve the target.
- Indian physical price also remained weak and followed market trend. Gujarat Shankar-6 price remained near to 43,000 to 43,500 range.
- Kapas rates are close to MSP or higher, CCI purchase slowed down and till date CCI procurement reached 89 lakh bales. Due to market down trend during this week, there was very little sales of CCI stock.
- Indian basis is attractive so MNC and exporters both are active in buying. But on other hand due to decline in yarn price domestic mill buying was slow.
- As whole value chain is in overbought position market is testing support near 43,000 levels.
- All India arrivals remained nearly 1,75,000 to 1,80,000 bales a day.
- Gujarat arrivals remained around 55,000 to 60,000 bales a day.
- Gujcot spot rate remained between 43,100 to 43,650 during this week.
- Indian rupee remained stronger between 72.92 to 73.04 against USD.