Market Movement from 29th Mar 2021 to 03rd Apr 2021
- Week started with minor green and stayed green till Wednesday. On Thursday after disappointing export sales report NY May sharply declined and closed 243 points in red. Technically market has lost upside momentum. Lockdown in Europe, strong dollar, export sales cancellation from China and Indonesia were main reasons for the sharp decline.
- USDA’s Prospective Plantings report was “middle of the road”. The report said that farmers intend to plant 12 million acres of cotton this year. Pre-report industry expectations were mostly 11.5 to 12.5 million acres. USDA’s earlier unofficial estimate from its Outlook Forum was 12 million acres.
- This report is based on surveys conducted the first 2 weeks of March. During this period, prices were mostly 5 to 7 cents higher than now. Given the decline in prices since, it remains an issue how accurate the 12 million acre number will be.
- U.S. Export Sales were disappointing to market. It was just 82,000 bales due to huge cancellation of 1,60,000 bales. Shipment was also not as last week but still enough to meet USDA export target.
- India physical market did not react much lower with NY. Indian rates are stayed stable near 44,800 to 45,100 Rs per candy. Due to weak market sentiment, CCI was not able to sale big quantity.
- Indian basis is now at par to positive so, Indian cotton become costly compare to last 15 days. In this scenario export can came on a halt.
- Arrivals in India were very low due to March closing and Holi festival. From next week again arrival will continue. During this week Indian arrivals was 30,000 to 40,000 bales.
- Gujarat arrival was 15,000 to 25,000 bales.
- Indian rupee remained weaker between 73.10 to 73.38 compare to last week.