Market Movement from 11th May 2020 to 16th May 2020
- NY July future gained 198 points W/W with help of better export sales to China. Despite some adverse statements by President Trump, China started to fulfill phase one of Trade deal commitments. May WASDE report was bearish for both years. But current demand by China and current lower rate attract the buyers.
- May WASDE again reduce consumption and increase ending stock for the current season and upcoming season both, World scenario is extremely bearish when current consumption is reduced to just 105 million bales. Next marketing year also production will be higher than consumption. Which indicate some bearish picture.
- Seeing long term bearish picture, spread between old crop and new crop turn from full carry to inverse. It will be interesting to watch this spread in next week.
- Indian arrivals resumed mainly in Maharashtra and Gujarat. Spinning mills also started running with half capacity. Indian cotton is now cheaper at basis so merchants are daily in the market. Export demand also slowly resumed in cotton as well as in yarn. With limited operation in private ginings, trade is slow and CCI get more arrivals due to higher MSP rate.
- Daily arrivals now reach 40,000 to 50,000 bales in India.
- Gujarat daily arrival reaches nearly 15,000 bales.
- Indian basis remained between -2.15 to -3.86.
- Indian Rupee remained stable between 75.47 to 75.74 during this week.