Monthly Rate Movement Report – Oct 2019
Posted : August 07, 2020
- NY Futures December bounced back from its low at below 57 cents in September and started October with 60.98 first day closing in better hope of resolution of US-China trade war. Although opening strength of ICE future remained well supported and market never came to that support during full month. ICE December crossed 65 cents mark in later part of the month.
- Brazil has harvested bumper cotton crop this season and remained always seller but due to good demand, Brazilian basis has improved. China still consuming majority of its requirements from its old stock cotton and still not buying any major quantities from the International market.
- Overall International scenario remains supportive at low 60 cents area.
- Still monsoon has not fully withdrawn and many parts of India still receiving rainfall. So, arrivals are not picking up, cotton crop in some parts of MP, Maharashtra and Gujarat is damaged due to untimely and excess rainfall. While North arrivals have picked-up with big improvement in quality. High temperature affected some parts of Haryana but still arrival was excellent.
- At present standing plants are healthy and in later part of the month arrivals picked up and quality also improved but till not up to the mark where Indian consumers wants it to be.
- CCI is still carrying old crop cotton stock of around 9 Lakh Bales, arrivals have been very slow due to continuous rainfall in various parts of the country and Diwali holidays, still there seems to be no news of any panic buying from mills, or shortage of cotton for consumption, so it’s very clear that Indian opening cotton stock was 35 Lakh Bales or more. It was strongly believed that there will be acute shortage of cotton by the end September or during the first half of the October which doesn’t seems to be the case looking at the supply situation at the end of the October. New Season started at around 39,200 to 39,400 mahurat deals on Diwali.
- Gujcot will publish Gujarat Cotton Crop estimate during the month of November.
- On 13th September Gujcot organised a very successful “Cotton Meet 2019” at Rajkot. We are thankful to all trade people for their overwhelming response. Around 425 delegates participated in the meeting, we apologize to those whom we could not accommodate due to space constrain at the venue. Speakers gave their own expert views on new season Gujarat cotton crop, Indian cotton crop and International scenario. Also, Tax Expert discussed all GST and IT related questions concerning to cotton industry.
- From 16th October Gujcot is giving new crop cotton Spot Rates, Old crop cotton rates were discontinued after 15th October.
- During the month Old Cotton price remained in the price range of 40,500 to 41,500 and New crop cotton prices remained steady between 39,100 to 39,400.
- Indian Rupee remained stable between 70.88 to 71.54 during this month.