Gujcot Weekly Report
Posted : June 15, 2021
Market Movement from 10th May 2021 to 15th May 2021
- This week was roller-coaster ride ending at a very low end. ICE future trend remained down, major damage was in last two days due to escalation in Israel – Palestine conflict, better rain forecast in Texas, disappointing US export sales and liquidation due to chart damage. NY July lost 723 points while December lost 567 points during the week. It narrowed inverse between July and December contract to just 121 points now.
- Following NY Chinese future also reacted down side.
- US export sales was very low and shipment numbers also below require pace of new target of 16.2 million bales. Now in remaining 12 weeks shipments required pace is near 3.25 lakh bales a week to meet the new target. At present commitment is beyond 16 million bales out of that 12.1 M bales already shipped.
- Opposite to NY futures Indian market remained strong this week. CCI and Maharashtra federation were able to offload handsome quantities. There was good buying in government auctions. Mills wants to buy A grade quality and rate of A Grade quality has advance to 47,000 Rs per Candy for Gujarat Shankar-6.
- Indian futures gained nearly 1% during the week despite huge down fall in NY.
- Domestic off take is low due to labor shortage and lockdown at some places, but mills witnessed good demand in yarn from abroad. Very good demand for super quality of hosiery yarns from abroad. So, mills buying for extra super quality continued despite pandemic.
- Gujcot spot rate remained in small range of 46,400 to 46,800.
- Indian cotton still in demand but now after huge decline in NY, Indian basis are not very attractive.
- Basis players are now offering their stock at reasonable rate. They will provide enough liquidity to the market.
- Ginners now return to work in Gujarat with reduction in corona cases. Also, with spike in cottonseed prices they got some parity.
- Indian basis improved due to rise of Indian cotton rate and speedy collapse on NY future market. Indian basis is now near to at par with NY December future.
- Indian rupee remains stronger near between 73.28 to 73.41 per USD.
- Cottonseed rate jumped to 750 to 780 Rs per 20 kg.