Gujcot Weekly Report 23-Oct-2021
Posted : June 04, 2022
Market Movement from 18th Oct 2021 to 23rd Oct 2021.
- Another highly volatile week with daily trading range of more than 300 to 400 points in NY future.
- Decent US Export sales but market ignored it and closed 400 points lower on Thursday. NY December ultimately closed with 93 points gain.
- US Export sale was 4,15,000 bales for current year and 63,900 bales for next marketing year. China was main buyer.
- Market worried about news of new virus and electricity shortage in China expecting reduction in Chinese consumption which created panic in NY future market.
- Chinese futures softened.
- Pakistan spot rate first time touch 15,000 PKR.
- Indian arrival first time cross 1 lakh bales in current season. Despite good arrivals physical market remained strong and cross 62,000 mark for Shankar-6 cotton.
- Rapid fall in cottonseed rate created disparity to ginners, Indian physical cotton does not follow decline in NY Cotton futures.
- Indian basis narrowed due to strong local physical market but still in negative and attractive to buy for basis players.
- Indian arrivals crossed 1,20,000 bales a day while Gujarat arrival is also nearly 30,000 bales a day.
- Demand in cotton is excellent and daily arrivals is absorbed regularly.
- We can expect better arrivals in next week with improvement in quality.