Monthly Rate Movement Report – Aug 2019
Posted : February 25, 2020
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.
- Month started with panic selling in cotton as President Trump declared to impose tariff on $ 300 billion worth of Chinese goods.
- After Closing at 63.84 cents on 31th July, NY December contract posted contract low in just one week and then traded full month in a small range of 57-60 area with dominance of spec short. M/M NY December contract lost 501 points or 7.85%.
- Indian physical market started the month with free fall and Gujcot Spot Rate for 29 MM lost nearly 2,200 Rs. per candy during the 1st week of the month to touch 41,200 on 6th of august following NY futures. But local demand, firm sentiment and some rainfall deficiency during the month of July supported the market and by the third week of the August market recovered almost all losses and touched 43,150 on 22nd August.
- Again, in the last week of August, China retaliated U.S. by imposing tariff on U.S. goods and sentiment changed to negative side. Also positive crop progress reports from all major cotton growing countries supported negative sentiment and Gujcot Spot Rate ended at 42,150 Rs per candy for 29 mm. Which is M/M loss of Rs. 1,250 Per candy.
- New cotton crop season is knocking the door in North India and mills are purchasing only immediate requirements so physical cotton market will remain under pressure.
- MCX Aug-19 cotton future contract was the last future contract for the old crop and due to delivery dilemma traded over valued during the month and settled at 20,410 Rs/Bale on the last day.
- During the month of August Indian basis remained between 15.35 to 18.76.