Gujcot Weekly Report
Posted : December 06, 2022
Market Movement from 11th Oct 2021 to 16th Oct 2021.
- This week was highly volatile with 4 out of 5 sessions ended in red. WASDE was bearish to neutral so usually market was down this week. Anticipating good export sale to China on Thursday market gained 300 points and on Friday morning limit up but after disappointing export sale numbers market gave up all gain. Ultimately NY December close with weekly loss of 327 points.
- In WASDE 2021 US crop is projected 5,00,000 bales lower to 18 million bales, world’s production raised to 7,00,000 bales and world consumption lowered by 7,40,000 bales. Ultimately world ending stock increased. So WASDE was neutral to bearish.
- US Export sale disappointed market. Sale was just 1,53,100 bales and shipment was only 1,05,000 bales cumulative sale reached 78.5 lakh bales out of that 18 lakh bales already shipped.
- In India CCI has limited stock to sell. Mills are in need to cover new crop. Also basis players active in covering. So market remained firm.
- Shankar 6 good quality rate crossed 60,000 per candy.
- Yarn prices supporting mills buying.
- Indian physical rate remained stable to firm but with weak currency and volatility on NY future Indian cotton basis remained volatile.
- Indian currency is week and crossed 75 Rs. per Dollar.
- Daily arrival in Gujarat is nearly 15,000 bales while all India arrival is near to 70,000 bales.
- At present speculator’s stake is big in cotton future so we may see yet another huge volatile week ahead.