Monthly Rate Movement Report – Mar 2020
Posted : May 23, 2020
Dear All Cotton Friends,
In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciated their humble service to the trade. Gujcot Team is giving daily closing of Indian and foreign futures rates.
In this report we have provided Following Rates during the month.
- MCX Cotton Daily Closing Rate
- USD-INR Exchange Rate Closing
- NCDEX and MCX converted into Rs. Candy Rate
We hope it will be useful to all the stake holders of Textile Value Chain.
Dear cotton friends
Wish you all good health. Stay home - Stay safe with family.
- Our best wishes to you all for new financial year 2020/2021
- This quarter will be known as coronavirus influenced quarter. World is still fighting against this pandemic. All equity and commodity markets declined 20 to 30%.
- New year 2020 started with good hope with anticipation of signing of US-China trade deal agreement which was signed on 15th January 2020. During these 15 days before 15th January gave positive close to cotton futures and cotton market moved towards 41,000 Rs/candy. Market was disappointed after trade deal details were made available and profit booking was started and market did not recover from that area. Gujcot spot rate declined much due to fear of pandemic corona virus. But in this declining market CCI was daily buyer and purchased huge quantities to support the market. Declining cotton market and reduction in cottonseed prices, put ginners out of competition with CCI and gradually CCI captured higher share in the market.
- Bloodbath started when coronavirus cases reported in India and Indian government took hard decision to lockdown whole India along with fast increasing number of coronavirus cases in USA and Europe which created havoc in world equity markets. It is hard to guess what will be the real price of cotton and cotton seed after markets open after lockdown period.
- NY cotton future declined to below 50 cents level after 15th January which was the lowest rate of last decade. Despite excellent US Export sales and also Chinese presence in sales and shipment market only followed coronavirus factor and stayed in bear mood.
- Recovery of coronavirus cases in China have started and work started resuming now.
- Still today 200 countries of the world are fighting against pandemic.
- Cancellation of yarn and apparel orders will trigger lower consumption of cotton by millions of bales.
- INR depreciated from 70 levels to 76 level. It will help export but right now Indian basis are too high despite currency depreciation.
- Indian arrival has crossed 30 million bales of 170 kg out of that government procurement is nearly 95 lakh bales.
- Still farmers are holding big quantity of Kapas and with present market rates of cotton and cotton seed it seems CCI will buy more quantity and it will be new record of government purchase.