Market Movement from 18th Feb 2019 to 23rd Feb 2019
• This week was volatile week and giving some breathing space to bulls. On 21st Feb anticipating good US Export Sales numbers and some positive news from trade negotiation between US and China NY future rose to recent high.
• On 22nd USDA cleared backlog of past 6 weeks Export Sales data. Sales was enough but cancellation of 3,32,000 bales gave some negative sentiment and NY Futures ended on Friday with 100 points loss. Over all NY May future gained 115 Points during this week.
Cotton prices were able to challenge the 72-cent level on the week, but settled at 71.84, basis March futures. May futures settled the week at 73.01. This week’s upside movement in March was not unexpected as it marked first Notice Day for the March delivery period.
• Encouraging Trade Talks Provide a Boost • USDA Releases Initial Estimates for 2019-20 • Export Reports Caught Up, Sales Still on Pace • Traders Turn Attention to Other Fundamental Factors
The cotton market reversed its one-day bullish course, disappointed by USDA’s summary report of its delayed sales. The total old crop sales from January 10 through February 14 came out at 977,000 bales. Using simple arithmetic, weekly sales averaged some 160,000 bales per week. China was not seen in that multi-week mix as a buyer of old crop bales, but rather a net canceler. Total shipments for those weeks exceeding one million bales, which if nothing else, had a bullish psychological sound to it.
.JPG "Gujarat Cotton Pressing Summary")
