Gujcot Weekly Report
Posted : May 14, 2021
Market Movement from 19th Apr 2021 to 24th Apr 2021
- This week US future was dominated by bulls. NY July is now front month as well as last future for old crop. NY July gained 377 points during this week. Cotton was perhaps most supported this week by the continuing rally in grains. Demand for corn, soybeans, wheat, and sorghum from China has support grain markets. Weak USD and still unclear drought condition in Texas gave bulls opportunity to pull market up.
- Net new US export sales for the week ending April 15 were just 1,03,100 bales of Upland and 6,700 bales of Pima. It was somewhat lower than expectation but shipment of 3,48,000 bales was enough to meet export target. US total export commitment till now crossed USDA’s new target at 15.75 million bales out of that 11 million bales already shipped.
- Indian physical market remained steady to lower and did not follow NY futures due to pandemic effect. With very small arrivals, supply force is slow but demand destruction in domestic market has kept rate softer.
- Indian mills have enough stock so in new circumstances stay away from new buying and use inventory.
- CCI was not able to sale bulk quantity during this week.
- Weaker Indian rupee and firm NY make Indian cotton again attractive. Basis of Indian cotton are now -1100 points. On this attractive level Indian export can resume again.
- Indian rupee stayed closed to 75 per USD.
- Gujcot spot rate stayed in tight range of 45,500 to 45,900.
- Due to less arrival and uptrend in oilseeds cottonseed rates remain firm near 750 - 770 per 20 kg.