Gujcot Weekly Report
Posted : February 25, 2020
Market Movement from 30th Dec 2019 to 04th Jan 2020
- This week was stable to firm in NY futures after crossing 200 days moving average speculators and funds increase their long positions. During the week NY March contract touched it’s high of 69.20 cents, but on Friday news of geo political tension between U.S. and Iran made market cautious to trade long.
- U.S. Export Sales was Excellent and well ahead of requirement to meet the target set by USDA. Cumulative sales reached 1,18,22,999 bales till 26th December.
- Indian physical market remained firm and first time GUJCOT Spot Rate crossed 39,500 mark during this season. Kapas in open market is being sold at very close to MSP or CCI purchase rate. This will result in higher liquidity in market.
- Indian mills are getting better order from abroad and domestic yarn market is also improving.
- On comparative basis, Indian cotton is the cheapest cotton in international market. Weaker rupee and firm NY make Indian basis more attractive. Indian exporters and basis players both are active in market.
- Indian daily arrivals remained between 2,25,000-2,50,000 bales Gujarat arrival were nearly 60,000 bales a day.
- On 31st December first quarter of the season is over and collection of Gujarat pressing figures underway. It looks like Gujarat pressing may touch 32 lakh bales.
- Gujcot Spot Rate remained between 39,250 to 39,600 Rs/Candy.
- Indian basis remained between 0.65 to 1.69.
- Indian Rupee remained weaker between 71.22 to 71.79 during this week.