Gujcot Weekly Report
Posted : May 06, 2022
Market Movement from 09th Jan 2022 to 15th Jan 2022.
- NY future continues with bull domination. Neutral to bullish WASDE and excellent export sales were main factors for bullish week on NY cotton futures. Lot of fixations pending for March and time running out so mills are in hurry to fix the rate. March NY closed on contract high crossing 119 cents marks with weekly gain of 458 points.
- WASDE was neutral to bullish. USDA reduced the crop numbers of US and India mainly. Reduce some China's important and ultimately reduced the World ending stock.
- Export sales was decent beyond 4 lakh bales but shipment still lagging behind with just 33.5 lakh bales shipped till date. USDA revised export target to 15 million bales due to slow pace of shipment.
- Indian cotton does not follow NY futures and stay steady despite rally on NY futures. Indian cotton is still costly compare to international prices. Indian cotton is still 700 points higher against Ny March. Indian basis narrowed with higher close of NY futures.
- Indian export is very slow and even cotton yarn market also not supporting higher price so, Indian market remained steady near 73,000 to 73,500 Rs per Candy.
- Indian rupee is stronger and stayed near 74 Rs a dollar.
- Strong international market will support sentiment.