Gujcot FIrst Quarterly Rate Movement Report – 2022-23
Posted : September 30, 2023
- Team Gujcot wishes happy, healthy and earning new year 2023 to all our friends.
- Year 2022 taught us many lessons. We witnessed extremely high rates. NY cotton future near 158 cents per lb. and Indian physical cotton rate crossed Rs one lakh per candy. Some sweet and some bitter memories of year 2022. first quarter of the Indian new cotton season and second quarter of US new cotton season was dominated by bears.
- High inflation and interest rate hike by all major economies, zero covid policy of China, endless war between Russia and Ukraine, fear of recession in Europe. All these all factors have reduced demand of final products with huge disparity. World cotton consumption at the lowest level. In this scenario new season was challenging for the whole textile value chain.
- During the month of December NY March stayed between wide range of 78.80 to 88.60. WASDE, US Export Sales and some other outside factors gave huge volatility to the market but ultimately final close was just loss of 124 points only.
- U.S. Export Sales was very low due to demand destruction. China has cancelled its purchase near 1,44,000 in a single week so particularly in December aggregate US export sales was disappointing. Shipment was steady.
- Indian physical cotton market also remained highly volatile. Gujrat S-6 price range was 68,500 to 56,500 during this month. In last 15 days S-6 price fell to 56,500 from 66,500 and recovered to 61,000 Rs per candy.
- Indian basis was real picture to study. Indian basis narrowed from 24 cents on to 3 cents on with NY March and at the end of the month, it again improved to near 10 cents on to NY March.
- Indian mills are running slow. yarn demand is somewhat improving but still mills are running at disparity.
- Hope New year 2023 brings smile to entire textile value chain with improved arrival.
- Wishing again prosperous new year to whole textile value chain.