Gujcot Weekly Report
Posted : November 23, 2022
Market Movement from 02nd Oct 2021 to 09th Oct 2021.
- This week was also dominated by bulls. NY December crossed 116 intraday before closing the week just above 110 cents. Speculative run helped NY December to gain 607 points during the week. From 20 September to 8th Oct NY December gained nearly 22 cents.
- US Export sales was lower with higher prices, mills stayed away from purchase or fixation. 2,60,000 bales sold and just 1,28,000 bales shipped.
- Lower US export sales and extended reserve sales of China has helped market to take a breath from continuous uptrend but still there is bull power in the market.
- ZCE at record high near 22,000 yuan per ton. China is main factor to pull all cotton futures.
- In India market MCX has also touched new intraday high of 31,500 Rs/Bale after closing near 31,000. Future is too high than current physical market.
- Gujcot spot rate is above 59,000 Rs per Candy and for good grade some bargains are near 60,000 Rs per Candy also. With hedge to futures forward bargain demanded for even higher rate also.
- CCI increased daily 1000 Rs a candy. And even with higher rate, they were able to sale some quantity. Now CCI unsold stock is nearly 2 lakh bales.
- Indian rupee got weaker and closed at 74.99
- Weaker rupee and higher NY make Indian basis cheaper. Indian basis is now near 1,000 to 1,100 points negative.
- Indian mills are enjoying spinning of cheaper cotton than rivals of other origin but at current stage forward booking of Indian cotton yarn is limited.
- Good sunshine across India now, increasing hope for arrivals to peak up. Majority of current arrivals are of low grade but good sun shine will improve the grade.
- Hope for market to get stabilized next week.