Gujcot Weekly Report
Posted : February 25, 2020
Market Movement from 06th Jan 2020 to 11th Jan 2020
- During this week NY March future continuing its bullish momentum on market sentiment moved up from last Friday’s close of 69.20 to 71.31 gaining 211 points and touching 8 months high supported by optimism surrounding the US-China trade deal as the date of signing the Phase one of trade deal is getting closer. Singing in ceremony is scheduled to be held on 15th of January.
- Specs are buying on technical reasons and support of positive news put market on new high to close above 71 cents mark. Terms of the trade deal is still a suspense; market is waiting to see the share of cotton purchase by China in trade deal.
- The World Agricultural Supply and Demand Estimates (WASDE) had many changes, but nearly all were fairly minor. USDA cut US Production but not as much as market had anticipated but cut in world carryover stock was positive. Overall WASDE report was neutral to somewhat bullish.
- US Export sales was lower but firm market sentiment ignored it.
- Indian ginners are playing long with support of sentiment and support of basis players and exporters. Gujarat Shankar-6 29 mm prices touched its season high of Rs 40,700 per Candy.
- Indian Rupee remained volatile over uncertainty of how Iran would react to US actions. Indian Rupee reacted to various negative and positive news of this front.
- Next week details of the US China trade deal will be made public and will be the market mover
- Indian daily arrivals between 2,25,000-2,50,000 bales Gujarat arrival near between 60,000-65,000 bales a day.
- Gujcot Spot Rate was remained between 39,750 to 40,750 Rs/Candy.
- Indian basis remained between 0.45 to 1.69.
- Indian Rupee remained stronger between 71.93 to 70.94 during this week.