Market Movement from 20th Jun 2022 to 25th Jun 2022.
- It was a blood bath during this week. NY future lost the ground and closed with huge decline. Hike in interest rate, inflation worry and retailer’s lower demand has put the market on bear mode. July on notice and lost 3669 points while front month December lost 2024 points during this week. After covid decline, this is first huge loss we saw in NY future. Although still long way for new crop and market will move with weather changes.
- US Export sales was better near 17500 for current and 277300 for next marketing year but shipment was lower just 3,77,500 bales.
- In India mcx futures also followed back-to-back with NY future and came back to near 40,000 from 45,000 per bale.
- With lack of supply ready cotton has not gown down significantly but sentiment is damaged so, we have saw good liquidity despite lower supply. Some mills also sold their inventory to lower the production due to lower demand in yarn. They are not able to find buyer in yarn market.
- Ultimately demand destruction has taken driver sheet against lower supply.
- Indian basis first time in history crossed 5000 on to July and 5700 on to December. It was due to huge weekly declined in NYBOT.
- Indian sowing figures yet lower than last year specially in North India. But still lot of time for rest of India and trade believe that all India sowing will increase.