Gujcot Weekly Report
Posted : March 31, 2020
APPEAL FROM THE DIRECTORS
Dear Cotton Friends,
- Today the whole world is facing a big challenge to defeat corona pandemic.
- Our prime minister has appealed all civilians to stay at home and not to travel without any big reason. On Sunday we all will stay at home following Janta curfew.
- We directors of Gujcot Trade Association appeal all our cotton friends to support the nation and hence avoid bad effect of corona on the nation and the world.
- We all know that the whole world is facing financial loss in commodities and equities. When such extra ordinary circumstances arise, no fundamentals work.
- So first primary is for us to stay healthy to fight against COVID-19.
- Cut-off the trade line for some time be neutral and think when to start the trade again.
- If we are alive, trade will come again with us.
- Our prime duty is to help the nation to contain the spread of COVID-19.
STAY HOME STAY SAFE
Market Movement from 16th Mar 2020 to 21th Mar 2020
- This week was a worldwide blood both in commodity and equity markets. All the way panic selling was found due to corona effect. Lockdown in Europe, U.S. and just starting in India made more panic on market.
- NY May future lost 681 points W/W or 11.30 % down during this week. It is the highest W/W down fall. Also, price prevailing now is the lowest in last 10 years being below 54 cents per pound levels.
- Despite excellent export and shipment market ignored it and went downward continuously.
- Indian physical market also lost nearly 1,000 to 1,500 Rs. per Candy W/W. There are very few local mills who are interested in buying cotton now.
- Due to lockdown and disturbance in dispatch, buyer wants to delay dispatch or even cancelled some order of yarns. It will create some cash crunch and extra burden on spinners.
- Indian currency also depreciated to 75.25 and in future all emerging market has to compete with their currency to get their share in export market.
- All India daily arrivals remained between 1,20,000 to 1,35,000 bales.
- Daily arrivals in Gujarat were between 25,000 to 35,000 bales.
- Gujcot Spot Rate remained between 37,100 to 38,450 Rs/Candy.
- Indian basis remained between 7.09 to 9.81.
- Indian Rupee remained weak between 74.24 to 75.24 during this week.