Gujcot Weekly Report
Posted : February 26, 2021
Market Movement from 01st Feb 2021 to 06th Feb 2021
- Before US Export Sales report on Thursday NY futures traded in small range during the week. After release of US export on Thursday market jumped up and registered new contract high of 80.84 and closed at 84.28 with 329 points gain. With profit taking on Friday market gave up half of Thursdays gain but still NY March future gained of 210 point during the week.
- March option expired now so from next week funds will roll over to May. Also, now trade will focus on NY May Future.
- U.S. Export Sales was decent and China, Turkey and Pakistan remained main buyers. Shipment also in good pace and cross 7 million bales till date.
- In next week February WASDE will guide the trend. Trade is anticipating increase in US export projection and decrease in US ending stock.
- Indian physical markets experienced some slowdown in All India arrival. With huge volatility in futures and slow arrival market crossed 44,000 levels and stayed near to it at the end of the week.
- Despite increased rate to 500 Rs. par candy On Friday, CCI was able to sell huge quantity. Market sentiment was bullish at the end of the week.
- Yarn inquiry little slowdown and with having big inventory spinners waiting to book in new high price.
- With sharp increase in NY future Indian basis first time came to huge negative. MNC and exporters are active to book this opportunity.
- Farmers have double bonanza with increase in price of cotton and cottonseed both. Cottonseed price spiked from 520 to 560 per 20 kgs during the week.
- All India arrivals remained nearly 1,25,000 to 1,50,000 bales a day.
- Gujarat arrivals remained around 45,000 to 50,000 bales a day.
- Over all this week was in bull favor both in cotton and cotton seed.
- Gujcot spot rate remained between 43,350 to 44,050 during this week.
- Indian rupee remained stable between 72.92 to 73.02 against USD.