Gujcot Weekly Report
Posted : December 06, 2022
Market Movement from 08th Nov 2021 to 13th Nov 2021.
- This week was stable to bullish on NY future. USAD WASDE report was neutral and export sales was lower but bullish sentiment ignored it and market stayed higher. Ultimately NY December gained 82 points during this week while now lead month March gained 184 points in this week.
- WASDE was generally neutral with minor changes. US crop raised by 2 lakh bales. World production raised mainly in Brazil and Australia. Beginning stock lowered which resulted in decrease in ending stock by 2 lakh bales from previous report.
- Export sales were disappointing with just 1,34,000 bales. Among that China was major buyer. Shipment also remained very slow at only 97,500 bales. At higher price it looks some demand destruction.
- In India rate was stable but after festival prices softened. It was due to some arrival pressure and cash crunch.
- Due to down trend in cottonseed prices, ginners are at huge disparity and ginning factories are running very slow pace. Also, not big buying from mills or exporters but supply side farmers are also firm in selling Kapas.
- October month Gujarat pressed 7.69 lakh bales of 170 kg and in November arrival pace will increase.
- At present Gujarat arrivals nearly 40,000 to 45,000 bales a day and all India arrivals are near 1,30,000 to 1,50,000 bales a day. Arrivals will increase from next week.
- Indian rupee got stronger after festival holiday.
- Textile secretary has called a meeting of all associations of whole textile value chain to review huge price hike in cotton and cotton yarn. Due to some uncertainty regarding government intervention, big players stayed sideway from the trade.
- Hope for better arrival next week.