Market Movement from 09th Mar 2020 to 14th Mar 2020
- News of spread of corona virus in Europe and USA dominated all markets. Sharp fall in stock markets across the world also dragged all commodity markets down. NY May Future lost 230 points during this week.
- March WASDE report showed supply side increased by higher production numbers and due to reduction of Chinese consumption, over all consumption demand reduced which resulted in higher ending stock. Over all WASDE was neutral to bearish.
- U.S. Export Sales was excellent and the highest during the year. Chinese buying was more than one million bales. Now U.S. poised to cross USDA target of 16.5 million bales and carry nearly one million bales in next year. Shipments were first time higher than the requirement to meet the target.
- Indian physical market was well supported by CCI purchase. Gujcot Rate remained in small range of 38,300 to 38,600 for 29 mm Shankar-6. With Sharp fall in NY future hedge players like merchants offering at very low price for forward buying. Arrival of low quality is increasing and price of lower quality variety is declining faster while super quality is well supported.
- Indian rupee around 74 Rs a US Dollar can support the export.
- All India daily arrivals remained between 1,20,000 to 1,35,000 bales.
- Daily arrivals in Gujarat was between 30,000 to 35,000 bales.
- Indian basis remained between 5.04 to 6.29.
- Indian Rupee remained weaker between 73.63 to 74.22 during this week.