Gujcot Weekly Report
Posted : May 14, 2021

Market Movement from 15th Mar 2021 to 20th Mar 2021

  • This week was dominated by bears. Except Tuesday all four sessions of NY May future closed in red.  Unpleasant U.S. China trade talk at Alaska put some negative impact on all commodities. So, despite decent export sales report NY May closed at 84.68 cents per pound with weekly loss of 288 points.
  • US Export sales was way above expectations at 4,44,700 RB with equality good shipment of 3,62,200 RB. For MY 2021-22 also 1,43,300 Bales sales was reported.
  • US total export commitment reached 14.95 million RB (Approx. 15.4 million statistical Bales) and total shipment of 9.30 million RB completed. Commitments are just 100,000 bales shy of the USDA export estimate of 15.5 million bales.
  • Total export commitments are now at 99% of the USDA’s 15.5 million statistical bale target, implying the USDA will likely revise its forecast higher on the April WASDE report.
  • US cotton planting of 2021 crop will begin soon and by end March we will start receiving USDA new crop panting intentions data.
  • Indian physical market also looks steady to down. At current arrival better quality is limited so, better quality rate remained steady despite bear trend.
  • Gujarat Spot rate Shankar-6 remained steady between 45,800 to 46,200.
  • CCI increased rate in some special quality but not able to sale much quantity.
  • Indian mills are well covered and now not in mood to increase inventory. So buying side is limited.
  • After decline in NY Indian basis improved and strong Indian rupee restrict new buying from abroad.
  • All India daily arrivals remained just above 75,000 bales.
  • Gujarat daily arrival was around 30,000 bales.
  • Financial year closing time of March and some bear sentiment prevail in market.
  • Indian rupee remained strong between 72.47 to 72.55.

 



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