Gujcot Weekly Report
Posted : November 23, 2022
Market Movement from 02nd May 2022 to 07th May 2022.
- Another highly volatile week in NY future. Front month July almost touched 156 cents on Wednesday, a new contract high and came limit down on Thursday and also closed in red on Friday. Downfall in equity market, higher dollar and profit booking pushed the cotton futures downward. Despite higher export sales and shipment market finished in red. Ultimately NY July closed with weekly loss of 202 points. While December closed with weekly gain of 167 points. July-December inverse lowered to 1987 points.
- Export sales was decent at 235,700 bales and shipment also as required pace at 447,800 bales.
- Indian physical market remained firm but buying was slow. Indian mills are losing at this price level and reduced production. Despite huge surge in NY, India cotton did not follow it.
- Indian basis are strong so very little scope of export of raw cotton.
- Chinese cotton and yarn both cheaper so there is no inquiry from China.
- Indian rupee get some strength and closed near 76.91.
- Hope for rain in Texas and other cotton growing area for next week. Also WASDE is due on next week. We may see another volatile week ahead.