GUJCOT WEEKLY REPORT 02-SEP-2023
Posted : September 30, 2023
Market Movement from 28th Aug 2023 to 02nd Sep 2023.
- "New York Cotton Futures for December demonstrated robust performance, increasing from 87.31 cents on August 25th to 89.95 cents on September 1st, resulting in a significant week-over-week gain of 2.64 cents. Furthermore, the month of August witnessed a notable upward trend, with prices rising from 84.72 cents on July 31st to 87.82 cents on August 31st, indicating a substantial month-over-month gain of 3.10 cents."
- NY December, the market made a significant breakthrough by surpassing a long-standing resistance level and ultimately closing above it. This development appears to exhibit promising bullish indicators for the market.
- "In the latest U.S. Cotton Export Sales report for the 2023-2024 season, net upland sales reached 61,400 bales, while upland shipments totaled 2,14,100 bales. Net Pima sales amounted to 4,600 bales, with Pima shipments totaling 3,100 bales, resulting in a total sales figure of 66,000 bales. Looking ahead to the 2024-2025 season, net upland sales for the week were recorded at 11,000 bales, while there were no reported net Pima sales. The total sales for the week for the upcoming season amounted to 11,000 bales."
- Gujcot Spot Rate displayed firmness during the week. It commenced at 60,300 on Monday, experienced a slight decline to 60,200 on Tuesday, and then rebounded to 60,400 on Wednesday. The upward trend continued with a rate of 60,650 on Thursday, and it further rose to 61,100 on Friday. Notably, the market showed remarkable strength on Saturday, closing the week at 62,150. The Gujcot spot rate has consistently mirrored the upward trend of the New York futures market, climbing steadily from 60,300 to 62,000. This is a huge weekly gain.
- Despite the upswing in cotton prices, the cotton yarn market has not followed the suit, leading to increased disparities for mills. Nevertheless, there is a notable sluggishness in yarn buying.
- Both the United States and China are currently facing crop stress conditions, and with a dry August in India, the status of the Indian crop also comes into question.
- Basis in India has remained relatively stable, with little change. Indian basis levels remained within the range of 400 to 600 points.
- The USD-INR Exchange Rate started at 82.63 on Monday, gradually increasing to 82.78 by Thursday. However, it slightly decreased to 82.71 by the end of the week on Friday.
- We are hopeful for some scattered rain in the coming week.