Monthly Rate Movement Report – Feb 2021
Posted : April 17, 2021
Dear All Cotton Friends,
In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciated their humble service to the trade. Gujcot Team is giving daily closing of Indian and foreign futures rates.
In this report we have provided Following Rates during the month.
- MCX Cotton Daily Closing Rate
- USD-INR Exchange Rate Closing
- NCDEX and MCX converted into Rs. Candy Rate
We hope it will be useful to all the stake holders of Textile Value Chain.
- February month was delighting month for the bulls. March was on expiry in middle of the month and NY Future trade shifted to May future.
- NY May started with 81.84 to 95.60 high on 25th March that was the highest gain of 13.76 point but same day reversal started and first time in new season May contract closed limit down and ultimately ended month with monthly gain of 6.99 points. NY July also closed with monthly gain of 6.93 points and March Future monthly gain was 7.18 cents.
- Huge volatility and continuous green close was due to mainly support from other commodity markets like grain, soya and corn. All commodities closed with huge gain this Month.
- US Announcement of 1.9 trillion USD stimulus package, weaker dollar and bullish WASDE also supported the market.
- In February WASDE USDA decreased production of US to just below 15 M bales, raised US export to 15.5 M bales and ending estimated stock at 4.3 M bales.
- During this month U.S. Export Sales also decent and at the end of the month U.S. total commitment touched 14.1 M bales while 8.1 M bales already shipped. USDA might be increase US export estimate if sales continue at same pace.
- To achieve USDA target, sale need below 1 lakh bales while shipment need nearly 3 lakh bales a week for rest of the season.
- In other origin china ZCE future also gained to cross 16,000 mark before close of the month. China was big buyer of US cotton throughout month.
- Pakistan cotton spot rate first time touch all time high of 12,000 PKR. Due to very low crop in Pakistan, Pakistani consumers remained active buyer in international markets.
- Indian physical rate also advanced and fallowed foreign futures. Gujcot Spot Rate started from 43,000 to 46,000 in this month. Decreasing Indian arrival and bullish sentiment made it hard to procure from ginners. So, most the buying was diverted toward CCI. CCI was able to off-load handsome quantities.
- Due to regular sales of CCI Indian physical rate did not follow back-to-back with NY Futures and Indian rate was remained more attractive.
- Indian basis touched -1300 at one point of time which is the lowest basis in last 5 years.
- Due to attractive basis MNC and traders were active and purchased huge quantities from CCI. They secured good export orders from abroad.
- Indian MCX futures showed sharp rise of 1,000 Rs. a bale.
- Indian currency got stronger at the start of month and depreciated nearly 2 % in last two days of the month.
- Cotton seed rate also was supportive and remained between 580 to 600 Rs. Per 20 Kg.
- Overall February was bull dominated month. Whole textile value chain earned and enjoy this month.