Gujcot Weekly Report
Posted : February 25, 2020
Market Movement from 03th Feb 2020 to 08th Feb 2020
- NY future march closed with minor gain W/W. while other May and July suffered minor loss W/W.
- Despite welcome news for the market as U.S. senate throw impeachment against president Trump, market was more focused on corona virus reports.
- Third consecutive week US export sales were excellent even in absence of much awaited Chinese buying support. Despite excellent export sales and shipments as the market keeps an eye focused on coronavirus' impact on global economy and its impact on global demand of cotton, NY March futures fell to a low of 66.75 cents per pound on Monday before finding the support.
- Trading volumes were very high as index funds rolled their passive long positions forward and option traders attempted to square up their positions ahead of expiration on February 7. In comparison, open interest has fallen dramatically for the first time in eight weeks, losing 20,067 contracts to finish the week at 247,438.
- All traders will be watching the release of the February WASDE report on Tuesday, 11th February. This is the first report after the signing of the Phase 1 deal. Since it is now official policy, the deal could have some impact on USDA predictions.
- On Monday due to huge decline in NY future followed by MCX cotton futures, Indian physical market started the week in red but consolidated full week due to less supply from farmers and slowdown of ginners due huge disparity. Ultimately Gujcot Spot Rate remained unchanged during the week.
- Next week trade is waiting for WASDE report and trade activity to resume in china after long holidays.
- Indian basis is now on higher side above 300 on to nearby NY. So merchants are offering to sale for forward month.
- Indian cotton is now costly for abroad markets but India has multiple quality so exporters get some orders of lower quality and export are in required pace.
- All India daily arrivals remained between 2,00,000 to 2,20,000 bales.
- Daily arrivals in Gujarat were nearly between 40,000 to 45,000 bales.
- Gujcot Spot Rate remained between 39,200 to 39,600 Rs/Candy.
- Indian basis remained between 2.90 to 3.26.
- Indian Rupee remained stable between 71.19 to 71.40 during this week.