Gujcot Weekly Report
Posted : May 14, 2021

Market Movement from 05th Apr 2021 to 10th Apr 2021

  • This week was double bonanza for Bulls. Decent export sales and Bullish WASDE has given full supports to Bull and NY May future gained 445 points W/W. May option is near to expire so roll over to July will starts from next week.
  •  The 2020-21 U.S. cotton supply and demand forecasts shows higher exports and lower ending stocks relative to last month. Production and domestic mill use are unchanged. The export forecast is raised by 2,50,000 bales, to 15.75 million, based on the pace of recent sales and shipments. Ending stock is forecasted at 3.9 million bales.
  • GLOBAL - With lower global 2020-21 beginning stocks this month—combined with slightly lower production and higher consumption—ending stock is 1.1 million bales lower, while projected trade is more than 9,00,000 bales higher.
  • U.S. Export Sales was decent with 2,77,000 bales sales and shipment of 3,93,000 bales. As of now commitment reach near 15.6 Million running bales (Approx. 16 Million Statical Bales) out of that 10.3 million bales already shipped.
  • Now Indian arrival slowed down so there is no selling force. In open market rates are firm and rising. But CCI now not able to sale big quantity. Mills are well covered and due to hike in Corona cases stayed in wait and watch mood so there is no big buying in CCI. Ginners has limited stock and still new season is far away so, when rates decline ginners selling is comes in slow pace so Indian cotton remained firm.
  • Yarn inquiry for long forward is on halt because world facing pandemic slow down again.
  • As basis Indian cotton is still cheaper but basis improved from the bottom.
  • Cottonseed rates are firm and remained near 750 Rs. per 20 kg.
  • Indian Shankar-6 rates stayed between 45,500 to 46,000.
  • Rupee weaker due to fear of further spread of Covid. In this weak rupee weakened nearly 3% from its bottom. Weaker rupee also supported exports.
  • Indian rupee remained between 73.29 to 74.73.

 



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