Gujcot Weekly Report
Posted : November 23, 2022
Market Movement from 17th Jan 2022 to 22nd Jan 2022.
- Another week of huge volatility on NY cotton future market.
- NY March posted contract high and decade high to 124.75 intraday on Wednesday. Indian agency has reduced Indian crop size which also was taken positive by NY future market. Technically now new top so, some short covering; some mill fixation has triggered new high. Thursday and Friday there was correction due to profit booking. But four days of week was in high volatile status. Ultimately NY March closed with 105 points weekly gain.
- Export sale were decent and with 2,76,000 bales on week but still shipment is below required pace to just nearly 2 lakh bales. Total shipment is just near 35.60 lakh bales. It needs new big volume every week to meet the target.
- India cotton also in big volatility and crossed bargain over 76,000 Rs per Candy mark. After reaching that area price pulled back to around Rs 75,000 per candy.
- India cotton future MCX also remained highly volatile and intraday price touched new high above 37,500 for current and 38,000 for later month. Price pulled back to nearly 36,000 in last 2 sessions.
- Arrivals are not as fast as expected but also better than required. As per cotton association of India report, there is enough stock with mills and trade to avoid panic buying.
- Indian basis is still costly but for Bangladesh ready requirement continues.
- Yarn market is dull so mills prefer to cover only immediate requirement.
- India rupee is stable between 74.23 to 74.57 Rs. per USD.