Gujcot Weekly Report
Posted : March 31, 2020
Market Movement from 10th Feb 2020 to 15th Feb 2020
- Despite the fear of spread of coronavirus epidemic, this week started with strong sentiment in cotton market but news of death of 242 people in Central China's Hubei province turned the sentiment to negative side and market gave up all the gain of first three days and finally NY Future closed on Friday with 34 points weekly loss.
- In February WASDE Report USDA has increased the world production by 8 lakh bales and has reduced world consumption by 12 lakh bales which resulted in increasing of ending stock by 25 lakh bales.
- Chinese consumption is reduced significantly by 10 lakh Bales and ending stock of world less China is increased by 40 lakh bales. So, WASDE Report looks somewhat bearish.
- U.S. Export Cumulative Sales reached 1,36,37,880 bales till 06th February.
- Indian physical cotton market was stable to weak. CCI buying supported the market. But demand side is weak due to coronavirus effect.
- Exporters and Merchants are very slow in buying. declining cotton seed prices due to sluggish demand is the main reason for ginners disparity. Ginners are running very slow due to current market situation.
- As Indian arrivals now reduced to less than 2 lakh bales a day. Out of that 40% kapas is procured by CCI. All India daily arrivals remained between 1,70,000 to 1,80,000 bales.
- Daily arrivals in Gujarat was between 40,000 to 45,000 bales.
- Gujcot Spot Rate remained between 39,150 to 39,350 Rs/Candy.
- Indian basis remained between 1.61 to 2.66.
- Indian Rupee remained stable between 71.28 to 71.36 during this week.