Gujcot Third Quarterly Rate Movement Report – 2021-22
Posted : September 30, 2023
Dear All Cotton Friends,
In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciated their humble service to the trade. Gujcot Team is giving daily closing of Indian and foreign futures rates.
In this report we have provided Following Rates during the month.
- MCX Cotton Daily Closing Rate
- USD-INR Exchange Rate Closing
- NCDEX and MCX converted into Rs. Candy Rate
We hope it will be useful to all the stake holders of Textile Value Chain.
- This quarter was dominated by bulls up to middle at June. NY May, July was leading month. May get top of 157 cents. July also get one intraday. High to 156. So from 1st April. NY May started with near 130 it has travelled up ward till expiry. July also running in top gear up to option expiry and not allowed mills to get some relief in fixation of on-call purchase. Mills on call purchase was the main reason for rate to sustain in upward main reason for rate to sustain in upward. Someday weather in Texas, rate hike by fed and fixation of mill were supported market sentiment.
- May-December and July - December spread was highly inverted. So roll over to new crop was looks suicide for mills and merchants so market was sustain till expiry at July and as soon as July off the board and mills fixation over big roller coaster we have seen in NY future. In one day July has lost 30 cents. In end at month NY future lost all gain and came below one dollar phycological mark.
- Demand destruction and recession fear looks on driver sheet against supply quiz.
- In India market start on 1st April near 90000 level get running following NY and mcx it has crossed one lakh mark in May and get stable more time on one lakh mark.
- MCX future also get good rhythm and touch new high up to 51520.
- Indian mills were worried and not able to compete from abroad. So they run slowly to avoid huge loss.
- Due to higher cost to cotton and cotton yarn from Taiwan and Vietnam. First time in history India import the cotton yarn and that was the indicator for cotton stockiest and ginners to get away from harm.
- After import of cotton yarn and government allow duty free import cotton market at India calm down. Buy NY was limited.
- Demand factor was drives now and in short supply also in end at quarter Indian market down near 10,000 rs a candy.
- Some lesson has taught by this quarter to mills and ginners by this volatility.
- Indian rupee was deprecated from 75 in April to 79 in June end. It was beneficial to exporter but unfortunately Indian yarn and cotton both out at competition due to high prize.
- Indian basis were running high continuously except one day they got near 400 on. Otherwise it was near 1600 on to 5100 on.
- New sowing is on pace now. Due to belter rate we expect higher sowing but in north it was not happened. Waiting for final sowing of other area.
- Next quarter will behave on weather.
- Hope for batter rain in coming time.