Market Movement from 26th Apr 2021 to 01st May 2021
- This week NY future market remained highly volatile on weather reports from major cotton growing areas in US. NY July future gained 220 point on Tuesday, lost 190 points on Wednesday and 298 points on Thursday on weak weekly export sales data and again gained 154 points on Friday supported by news of fresh import quota from Chinese government, ultimately NY July future lost 72 points during the week while December future gained 13 points and reduce July-Dec inverse to nearly 300 points.
- U.S. Export Sales was very low but shipment was higher than require pace to meet the target. Now total US export commitment reached 16 million bales out of that 11.4 million bales already shipped.
- China‘s NDRC declared 7 lakh tons import quota with low tariff.
- Indian market did not react with volatility of NY futures. Indian physical rate remained nearly unchanged in tight range of 45,700 to 46,200. CCI sold around 1.5 lakh bales during the week.
- Ginning factories are running slow or shutdown on Covid spike. So there is no supply pressure. Indian basis again attractive so export will continue.
- Cottonseed rate soften now to near 725-735
- Indian rupee remained between 74.04 to 74.71.