Gujcot Weekly Report
Posted : August 19, 2019

Market Movement from 05th Aug 2019 to 10th Aug 2019

 

  • Week Started with panic selling in NY as well as Indian physical cotton market. On Monday NY Dec future posted its contract low of 57.26 cents and Gujcot Spot Rate of 29 mm lost Rs. 900 a candy in a day. Cotton futures and physical market collapsed after president Trump announced $300 b/n tariff on Chinese goods from September 1.

 

  • US Export sales were somewhat better and as china was a big buyer in this week for new crop, it has given support to the market. As we have stated in last few weekly reports, US Export shipments could not meet target of 14.5 M bales set by USDA. Remaining unshipped old sales of 2.38 M bales now carried forward to accumulated sales of 2019-20 and 5 lakh bales increase in opening stock of 2019-20 will be reflected on next WASDE report on 12th August.

 

  • Traders are awaiting August WASDE report, which will give higher opening of US. Also, US crop production estimate will guide the market.

 

  • Indian physical market collapsed on Monday with good monsoon reports and following NY Futures. But rebounded from the bottom and recovered most of the weekly loss. Local sentiment is still firm and very slow in selling.

 

  • CAI maintained their Indian production estimate of 312 lakh bales. CCI is holding maximum cotton stock and still not decided to off load it.

 

  • Overall NY future and Indian physical market both has touched its new bottom and rebounded from that support. So, it looks that after huge panic market has discounted all bear news and is well supported near bottom. Depreciation of Indian currency will give bottom support to Indian physical market. Import will be costly because of depreciation of Indian rupee. 

 

  • All India cotton sowing till 08th of August was 118.732 lakh hectares against 112.604 lakh hectares last year on same time.

 

  • Gujarat 29 mm Cotton sold between 41,200 to 41,800 Rs/Candy.

 

  • All India arrival daily arrivals remained between 3,500 to 4,000 bales.

 

  • Daily arrivals in Gujarat were nearly 2,000 to 2,500 bales.

 

  • NY Dec futures w/w lost 0.52 cents.

 

  • Indian Rupee remained weaker between 70.69 to 70.88 during this week.

 



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