Monthly Rate Movement Report – May 2020
Posted : July 10, 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.
- Gujarat ginners and spinners resumed partial operation after relaxation in lockdown. Month started with some higher rate and declined fast in the first week itself.
- NY July is lead month for old crop and NY December is first month to hedge new crop and roll over of old crop hedging. July-Dec spread was in full carry at the start of the month but towards the end of the month it became inverse. It shows that next year will start with huge opening and traders are not in a mood to go Bull on new crop.
- Some macro-economic factors can change line of trade.
- China is trying to fulfill phase one of US china deal and purchased handsome quantity for current as well as new marketing year also.
- Some tension with the US stand on Hongkong matter will have negative impact on NY future.
- WASDE was bearish but trade ignored it and NY July was able to cross 59 levels but could not sustain at that level and again ended the month just over 57 cents mark. NY July gained 26 points and NY December lost 144 points M/M.
- Ginning all over India started working from the beginning of May month. Arrivals gradually increased from 20,000 a day to 80,000 a day during the May.
- Gujcot spot rate opened with 33,700 but never touched that level again during the month. Slow demand with partial working of mills kept pressure on price. CCI purchased half of the arrivals so ginners were not very comfortable to work. Lower quality arrivals are at its peak and exporters and open-end mills showed full interest to buy lower quality. V-797 pressing is in full swing and rate touched lowest to 17,400 during the month and again jumped back to Rs 20,000 per candy levels.
- Indian mills faced shortage of workers. Domestic demand is slow and payment cycle as well is not good so mills prefer to sell via merchant exporters. There are lots of problems to be solved of pre-lockdown upper rate bargains both in Cotton and Yarn. At current rate demand of cotton yarn is excellent in export.
- Indian basis working negative to NY Futures. Indian cotton is the cheapest cotton in the world, so India gets regular export orders.
- Hope again whole textile value chain get same rhythm as it was before lockdown period. Cheaper Indian cotton will give opportunity to earn to whole value chain.
- Due to complete lockdown there was no cotton trade in Gujarat and we were not able to give Gujcot Daily Spot rate during the month of April. As a model we receive actual daily trade price from our Gujarat broker’s panel consisting of reputed brokers from all four zones of Gujarat. With their valuable inputs we have been able to serve you daily with actual trade mean rate.
- In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciate their humble service to the trade.
- In this report we provide following Rates during the month.
Gujarat Daily Spot Rate
Indian and Foreign cotton future daily closing prices
Indian Cotton Basis against ICE Cotton Future front month. (Ex-Factory)