Monthly Rate Movement Report – Jun 2019
Posted : August 19, 2019

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.

 

  • Daily Physical Spot Rate

 

  • MCX Cotton Daily Closing Rate

 

  • USD-INR Exchange Rate Closing

 

  • Cotlook Index

 

  • ICE Future Closing

 

  • NCDEX Kapas Rate

 

  • MCX Future Closing

 

  • NCDEX and MCX converted into Rs. Candy Rate

 

We hope it will be useful to all the stake holders of Textile Value Chain.

 

Conclusion

  • Month of June started with slightly higher rate but remained in very narrow range. Gujcot physical 29 mm Rate remained in tight range of 45,500 to 45,700 most of the time during this month.
  • MCX Spot Rate also remained in very tight range of 21,800 to 22,000.
  • USD-INR exchange rate also remained in very narrow range from 69.02 to 69.90 during the month.
  • So, overall June month was stable and without much volatility.
  • NY July remained in down trend from 69.42 to 61.19 and settled last near 63.15 but now front month is December which remained in narrow range between 65.04 to 67.97.
  • During this month main surprising area was MCX June future. All three June, July and August month futures fall flat on from 19th to the end of July expiry. June future expired in negative carry with whole certified stock was delivered to buyers.
  • Hedgers without demat stock has to pay penalty for their unawareness regarding open interest.
  • During this month arrivals was very slow. All India arrivals was 15,000 to 20,000 bales at the start of the month and 5,000 to 7,000 bales at the end of the month. Gujarat arrivals was 5,000 to 6,000 bales at the start of the month and 2,500 to 3,000 bales at the end of the month.
  • The reason of low volatility and thin volume was, ginners and suppliers were waiting for monsoon rain to recover weight loss. While buyers were waiting for demand in yarn. Indian basis with ICE December is too high between 16.5 to 18.8 so cotton export is on the hold and very few bargains were reported for Bangladesh.  Indian mills continued import booking during this month.
  • More arrival of imported cotton and sentiment to sell after monsoon rain can give some down ward tendency in the market in next month. While positive trade talk between china and US can trigger some short covering rally. wait and see.      

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