Gujcot Weekly Report
Posted : May 23, 2020
Market Movement from 04th May 2020 to 09th May 2020
- This week started with down trend due to fear of trade tension between the US and China after President Trump’s statements, but from Wednesday speculators were active for short-term profit booking. From Wednesday onwards market remained positive and finally, ICE Jul cotton future closed at 56.27 cents with 88 points gain W/W.
- Cotton Market witnessed very steep fall after 15th Dec-2019 due to global coronavirus-led sanctions.
- U.S. Export Sales was decent and China is lead buyer, which shows now China is serious to fulfil phase one of trade deal. Good pace of shipments to achieve new target.
- The USDA WASDE report will be released on next Tuesday, has the attention of cotton traders, investors and all those involved in commodity markets.
- Next week will may remain volatile with US planting progress report, WASDE report and export sales report.
- Indian physical market resumed some trade activities. CCI buy regularly. Farmers are also selling to private ginners at market price which gives ginners an opportunity to earn processing margin. Mills are running partially so demand of raw cotton is very limited.
- CCI offered big discount for 2019-20 crop cotton also.
- Over all Indian physical market steady with limited demand.
- Indian basis remained stable between 1.74 to -1.65 with short range during this week.
- Indian Rupee remained stable between 75.54 to 75.75 with small range during this week.