Gujcot Weekly Report
Posted : June 04, 2022
Market Movement from 03rd Jan 2022 to 08th Jan 2022.
- Another volatile week with upward gain in NY future. Tuesday NY March crossed 117 cents marks intraday, though could not sustain but still was able to remain near to second highest close. Support from outside markets, renewed interest of speculators in cotton and some fundamental supported NY futures to close in green weekly. NY March closed the week with 252 points gain.
- US Export was lower for this week with just 1,47,000 bales but shipment was more disappointing to just over 1 lakh bales. Till date shipment is just 31 lakh bales which shows that it’s difficult to meet the target set by the USDA.
- Indian cotton has good demand and touched Rs 75,000 per Candy mark for Shankar-6 cotton. At higher rate, mills’ interest is slow but limited arrival and slow selling market was able to sustain at higher level.
- Ministry of Textile arranged a meeting of all stake holders of textile value chain to restrict speculation in cotton, Before the meeting Indian cotton future on MCX went down to Rs 34,000 level and soon after the meeting it rose back and cross Rs. 36,000 again. Trade is still watching Government of India’s stand to remove import duty on raw cotton.
- Indian rupee is stronger near 74.30 Rs per USD. Indian basis is very high. Indian basis crossed 1,150 on and hence it is hard to export raw cotton.
- At present level Indian cotton looks over valued and at over bought situation.
- Best wishes for all cotton friends for Sankranti, Lohri and Pongal festivals coming in next week.