Gujcot Weekly Report
Posted : November 23, 2022
Market Movement from 03rd Oct 2022 to 08th Oct 2022.
- NY December remained highly volatility with limit up on Tuesday and limit down on Wednesday but ultimately managed to contain its loss to just 111 points during the week. Macro-economic worry make market sentiments dull. Despite good US export sales, market closed in red. On last day of trading NY Dec traded below 82 cents but managed to close in green.
- US export sales was better compared to last two weeks. 1,22,000 bales sales for current year and 49,000 bales for next marketing year. Shipment also was decent at 2,12,000 bales. Now US total commitment is 8.25 million bales out of that 2 million bales already exported.
- In India cumulative Shankar arrival reached near 70,00 bales. North India arrival did not picked up as expected so market remained steady. Shankar-6 prices remained near 69,000 to 70,500 Rs per candy while North India prices were near 7100 to 7200 Re per mound.
- Rainfall was reported in Western belt of cotton crop. No big damage reported so far but it is a cause of concern. Hope Mother Nature will blessed Indian farmers.
- Indian rupee first time depreciated to 82 INR per USD level. Although rupee is performing better than other currencies.
- Still mills have no good reason to increase production as yarn off take is low and yarn prices are under pressure.
- Indian basis is still very high. MNC offering December delivery at 1200 points on to NY December future.
- Indian basis will be narrowed as arrivals will increase.
- Hope for best