Market Movement from 22nd Feb 2021 to 27th Feb 2021
- After 9 consecutive green close NY futures closed limit down on Thursday. Before that NY May climbed its new two and half year high to 95.60 on Thursday and return back to limit down so Thursday NY May closed down 591 points from its day’s high. After gaining nearly 500 points from last week NY May closed in red and lost 165 points W/W. There was no big reason for trend reversal but correction was due in over bought market condition.
- U.S. Export sale was not bad but somewhat lower than average but it is more than required pace to meet the export target. As till date total commitment is 14.1 million bales while 8.1 million bales already shipped.
- Indian physical rate was highly discounted with huge rise in NY future. At this level MNC and exporters were active in buying. From abroad they received good orders for CCI’S cotton. During last two weeks CCI offload huge quantity of cotton.
- In domestic market there was good buying from local mills also. Mills have good processing margin and wish to continue with huge inventories.
- Rupee got weaker in last two days of the week with strong dollar index.
- All Indian arrivals now around one lakh bales a day.
- Gujarat arrivals still good and remained between 35,000 to 40,000 bales a day.
- Cottonseed rate fell down from 600 to nearly 580 Rs per 20 kgs.
- Indian rupee remained between 72.32 to 73.46 against USD.