Gujcot Weekly Report
Posted : February 26, 2021
Market Movement from 08th Feb 2021 to 13th Feb 2021
- NY Future market remined highly volatile during this week in favor of bulls with triple digit gain on Monday, Tuesday and Thursday and triple digit loss on Wednesday. Over all NY March gained 453 points and NY May gained 464 points during the week.
- WASDE was neutral to supportive. Few minor changes in WASDE, Export of US increase to 15.5 million bales which left US ending stock to 4.30 million Bales. Overall impact on World ending stock was just 5.8 lakh bales reduction but bulls dominated on market. Again, after release of good US export sales and shipment report market got upward momentum. Finally, market closed on Friday with multi-year high close. So now US market under bull’s control.
- U.S. Export Sales was decent and shipment was over 4.4 lakh bales which supported market. Till date US has committed 13.7 million bales out of that 7.5 million bales already shipped.
- National Cotton Council released its US planting intention survey which indicated reduction in US planting by 5.2% which was expected by the market.
- Indian physical market yet to find more demand and was not able to follow NY during this week.
- Indian mills are well covered and hesitant to increase inventory at higher rate.
- Indian basis remained highly negative so MNCs were big buyers during the week. Indian exporters also got very good inquiry from international buyers. Shortage of container restricts big shipment from India.
- CCI procurement almost stopped due to higher kapas prices. CCI increased their selling price and was able to sell good quantity during the week.
- All India arrivals remained nearly 1,20,000 to 1,40,000 bales a day.
- Gujarat arrivals remained around 40,000 to 45,000 bales a day.
- Cottonseed rate near 560 to 580 has supported ginners parity.
- Over all this week was bull favored week both in cotton and cotton seed.
- Gujcot spot rate remained between 44,000 to 44,400 during this week.
- Indian rupee remained stable between 72.75 to 72.96 against USD.