Monthly Rate Movement Report – Apr 2021
Posted : September 30, 2023
Dear All Cotton Friends,
In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciated their humble service to the trade. Gujcot Team is giving daily closing of Indian and foreign futures rates.
In this report we have provided Following Rates during the month.
- MCX Cotton Daily Closing Rate
- USD-INR Exchange Rate Closing
- NCDEX and MCX converted into Rs. Candy Rate
We hope it will be useful to all the stake holders of Textile Value Chain.
- International Cotton future market remained very volatile during the month of April but Indian markets remained firm to steady.
- NY May future was on expiry and whole trade shifted to July future. NY July travelled from bottom near 79 cents and touched high of 91+ cents. Technical trend remained up and futures rose upward from every low. Finally, July future gained 591 points during the month.
- During the month US export sales was around 5 Lakh bales but shipment was decent near 11 lakh bales and beyond require pace to meet 15.75 million bales export target.
- April USDA WASDE reduced some beginning stock, reduced production, and Increased some consumption so ending stock declined by over one million bales. Bullish WASDE supported cotton market sentiment. Outside forces like currency, higher price in grains also supported cotton market. Ultimately April was dominated by Bull on NY futures.
- Chinese futures also gained during April. China has declared additional sliding scale import quota of 7 lakh tons for their consumers.
- Indian cotton did not follow back-to-back with NY future. Indian market remained very tight range of 45,200 to 46,200 for shankar-6 during April.
- CCI sold very small quantity of cotton during the month.
- Indian basis was in positive tertiary at the start of the month but weaker rupee and strong NY futures brought Indian basis lower to -1,100. Despite attractive basis Indian export sales did not witness any big surge in exports.
- Till April Indian cotton export has crossed 50 lakh bales mark. Wait to get final updated by DGCIS.
- Indian arrivals reached above 33 million bales mark. According to COCPC Indian consumption may reduce to 303 lakh bales.
- Due to surge in covid cases, ginning operation slowed down in second half of the month.
- Due to Firm cottonseed rate and steady cotton rates, farmers are getting good rate of their produce.