Gujcot Weekly Report
Posted : February 25, 2020
Market Movement from 20th Jan 2020 to 25th Jan 2020
- On Tuesday NY futures suffered the biggest daily percentage decline in more than five months so the next day supported by mill buying and as investors bought back the natural fiber.
- After a prolonged trade dispute between world's 2 largest economies, first phase of the trade deal was finally signed on 15th of January 2020. China committed to buy additional $32 billion worth of US agricultural products in two years on 2017 baseline. But still China has not started buying cotton, may be due to corona virus issue and New year celebration.
- Market was overbought on Wednesday so moved lower in next few days.
- NY March lost 185 w/w and lost the ground of 70 cent area and closed at 69.40 cents.
- Because of lunar new year festivals and corona virus issue China will not be buying much in next week also. Trade and speculators both are watching the situation very closely. Market may remain range bound during next week.
- US Cumulative export sales commitment reached 1,25,75,355 bales till 16th January. Despite excellent US Export Sales and shipment on Friday market closed in red with fear of slowdown due to Corona virus.
- Indian physical market also saw selling pressure with good arrival after sankranti, lohdi and pongal festivals.
- Market declined gradually but well supported by CCI procurement.
- Sharp decline in cotton and cottonseed rate created huge disparity to ginners, so on basis Indian market did not react back to back. Gujcot spot rate lost 850 Rs per candy w/w.
- As export in better pace from India during this week.
- CCI procurement reached over 4 M bales, Gujarat share is very low.
- All India daily arrivals remained between 2,25,000 to 2,40,000 bales.
- Daily arrivals in Gujarat were nearly between 60,000 to 70,000 bales.
- Gujcot Spot Rate remained between 39,800 to 40,450 Rs/Candy.
- Indian basis remained between 0.45 to 2.78.
- Indian Rupee remained weaker than last week between 71.10 to 71.32 during this week.