Gujcot Weekly Report
Posted : February 25, 2020
Market Movement from 27th Jan 2020 to 01st Feb 2020
- On Monday NY futures opened sharply down by 125 points and recovered all the loss during the day and closed with 11 points gain. This week finally finished with 155 points loss W/W.
- During this week china celebrated the Lunar New Year festival. Growing fears of the spread of the corona virus in China and other countries weighed on global markets. World’s biggest cotton consumer faced major virus threat and were also on new year holiday so cotton markets remained volatile this week with bearish sentiment.
- US weekly export sales was excellent this week as well as last week. China was a major buyer for current and new year both. But market finished both the days in three digits red it looks corona virus threat for economy weighed on players mind and ignored the bullish news.
- US Cumulative export sales commitment reached 1,29,38,291 bales till 23th January.
- Investors also kept a close eye on the revamped North American Free Trade Agreement known as the U.S.-Mexico-Canada Agreement, expected to be signed in mid-week. Having the deal signed is good. It will put more pressure on the Chinese to start negotiation of Phase 2 of US-China Trade Agreement.
- Over all NY future expiry of March option, roll over of funds, fear of slowdown in economy due to corona virus has put bearish impact. Technically and sentimentally market on bear mood and ignoring any bullish news.
- In India government procurement reached 57 lakh bales with CCI 52 and Federation 5 lakh bales respectively. Out of that Gujarat procurement is nearly 2,75,000 bales. Down trend in cotton and cottonseed rate created huge disparity to ginners so ginners have slowed down their operations and CCI again getting big flow of kapas. If rate doesn’t recover, big quantity will go to CCI again and CCI will be the market mover in later part of the season.
- With decline in NY future Indian basis are now higher. So MNC and exporters were less active during this week. Indian spot rate remained in small range between 39,400 to 39,900 supported by CCI purchase under MSP.
- All India daily arrivals remained between 2,10,000 to 2,40,000 bales.
- Daily arrivals in Gujarat were nearly between 40,000 to 50,000 bales.
- Gujcot Spot Rate remained between 39,400 to 39,900 Rs/Candy.
- Indian basis remained between 0.37 to 3.39.
- Gujarat pressing figure collection will start from tomorrow but approximately it can cross 50 lakh bales of 170 Kgs by end January.
- Indian Rupee remained stable between 71.25 to 71.48 during this week.