Monthly Rate Movement Report – Nov 2019
Posted : June 04, 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.

  • 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

  • NY December and March Futures traded full month in very small range. December M/M lost 4 points while March Future lost 52 points.
  • During the month December touched low of 61.84 on 21-11-2019 but closed at 64.40 and on the same day March touched low at 64.01 recovered to close at 65.36.
  • Roll over from December to March was crucial time and market get higher pressure during this time.
  • There was Excellent buying in U.S. Cotton during this month cumulative sales reached 1,06,92,352 at last reported from 96,15,519 as 10,76,833 bales were sales in this month. It is decent sales showing good demand of U.S. Cotton on prevailing rates.
  • Unexpectedly lower crop in Pakistan will put pressure on Pakistani Spinners to import their requirement from International suppliers, since option of buying Indian cotton is not available to them they have to buy comparatively costlier US cotton or other growths.
  • Despite many positive news of US-China signing Phase-1 of the deal, still nothing has been finalized and deal has not been signed
  • Indian physical market started with Shankar-6 at 39,300 to 39,500 at the start of the month and declined to 38,400 with increasing arrivals. Also quality issue persisted due to late rains and CCI not willing to procure high moisture kapas market remined under price pressure. In the later part of the month some lower moisture Kapas entered the market and CCI come into action to procure and market got support at that levels.
  • Cotton seed rate was on higher side which started declining with arrival pressure. CAI Estimated 2019-20 Indian crop at 354.50 lakh bales and CAB Estimated at 360 lakh bales of 170 kgs. Although GUJCOT Crop Estimate of Gujarat is higher than both the agencies.
  • Pink bollworm infestation is reported in some parts of Gujarat. Season started late due to late rains, Gujarat daily pressing started with 25,000 bales and reached 45,000 bls in the later part of the month.
  • Indian basis was attractive during this month but yet Indian exporters are not getting big order from abroad. In lower variety of lower grade there was good demand from overseas buyers.
  • Indian basis remained in 3.55 to 7.53 range up to 18-11-2019 on NY December.
  • Indian basis remained in 2.39 to 4.16 range from 18 to 30 November on NY March.
  • Indian Rupee remained between 70.69 to 72.09 against USD during this month.

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