Gujcot Weekly Report
Posted : June 15, 2021
Market Movement from 17th May 2021 to 22th May 2021
- This Week cyclone Tauktae hit Suarashtra costal area specially Una, Rajula cotton belt and caused a huge loss to farmers and some Industries. We Gujcot family express our sympathy to all affected by this cyclone.
- We witnessed a volatile week on NY future. Three day of loss and two days of gain but ultimately NY July closed with just 39 points and NY December with 200 points weekly gain. With increase in certified stock commercial stake holder were able to put carry in spread. From start of main active trade it was highly inverse.
- U.S. Export Sales was higher than last week. Shipment was again on track and beyond require pace to meet the new export target. US export commitment is 16.16 million bales almost near to new target and shipment is 12.5 million bales.
- With very slow arrival and good demand, Indian physical cotton market remained strong. Gujcot spot rate now crossed 47,000 mark. Despite rise in cotton price still demand is good.
- CCI were able to offload handsome quantity particular North mills are good buyer in CCI stock cotton in north India.
- For mills some domestic sales and payments are worrisome but mills are working in hope that prevailing market condition will improve soon. Yarn export is at good pace and mills are still earning at higher price of cotton also.
- Indian basis improved on appreciation in Indian rupee and decline in ICE futures with steady to firm domestic physical cotton market. At present Indian basis are almost at par with NY future.
- Many ginning factories were affected by cyclone and ginning operation remained very slow during this week. Again, ginning activity will resume from next week.
- Gujcot spot rate remains between 46,750-47,350.
- Indian rupee remains stronger near between 72.83 to 73.21 per USD.
- Cotton seed rate remaned in 750-780 Rs per 20 kg range.