Gujcot Weekly Report
Posted : March 30, 2020
Market Movement from 24th Feb 2020 to 29th Feb 2020
The Week of Blood Bath
- News of spread of corona virus outside china to many other countries like Japan, South Korea, Italy and Iran created havoc in all markets including cotton market. NY May future lost 751 points during the week and Gujarat physical cotton market lost almost 850 Rs per candy in last 3 days of the week and Rs. 1,150 per candy during this week.
- U.S Export Sales was very strong showing better demand of U.S Cotton but the market ignored all positive news and continued bearish trend on corona virus news.
- With spread of corona virus in different parts of the world, there was a massive selloff in equity and commodity markets. All Equity and commodity markets declined sharply on fear of economic slowdown which may lead to recession. Cotton as an industrial commodity followed the trend. All Major cotton future markets like ICE, ZCE and MCX declined very sharply during the week.
- In India, CCI continued MSP procurement and supported the kapas prices. Falling Cotton seed prices and CCI Supported kapas prices put ginners out of competition with CCI.
- All India daily arrivals remained between 1,70,000 to 1,80,000 bales.
- Daily arrivals in Gujarat was between 35,000 to 40,000 bales.
- Gujcot Spot Rate remained between 38,350 to 39,350 Rs/Candy.
- Indian basis remained between 1.98 to 7.02
- Indian Rupee remained weaker between 71.55 to 72.18 during this week.