Monthly Rate Movement Report – August 2021
Posted : October 23, 2021
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.
- Compare to July, cotton market remained quite stable during the month of August. NY December was lead month and opened the month below 90 cents and travelled toward 96.70 cents intraday but could not sustain to close above 96 Cents. NY made three failed attempt to close above 96 cents, ultimately closed the month with 314 points gain.
- It is interesting to note that during full August, NY March future remained inverted to NY December future.
- US Cotton export unshipped commitments were carried forward to New Year and also expert sale for all four weeks was good but Chinese buying was poor. Cumulative US export sale is lower compare to last year at this stage.
- China opened their reserve cotton sale and 100% offered quantity was sold out. ZCE cotton futures remained volatile between 17000 to 18000 but in last week of the month settled near 17200 to 17500 levels.
- Pakistan new arrival has started and official KCA spot rate remained between 13500 to 14000.
- Cotton buying in India slowed down during August. During first half of the month market remained stable near 57500 Rs per Candy but in second half of the month it came down to 56000 Rs per Candy.
- CCI also was not able to sale big quantity but they have done their work and now they have limited quantity to sale.
- Investors were eager to sale though out this month and that was the reason for market to fall.
- As in start Indian basis were highest to near 877 on but with recover in NY and stable to down Indian price has reduce basis to just 300 on.
- No movements on cotton export front with stronger Rupee.
- Indian rupees got stronger and touched 73 Rs/USD from 74.50 level.
- Arrival in India started in north mainly also supported in small quantity from central India. In September arrivals will peak up.
- All Indian cotton sowing was reported lower compare to last year with Gujarat almost at par with last year.
- Standing crop is in good condition with good rainfall in last week of the month.