GUJCOT MONTHLY RATE MOVEMENT REPORT– FEB-2024
Posted : July 20, 2024

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.

 

  • Daily Physical Spot Rate

 

  • MCX Cotton Daily Closing Rate

 

  • USD-INR Exchange Rate Closing

 

  • Cotlook Index

 

  • ICE Future Closing

 

  • NCDEX Kapas Rate

 

  • MCX Future Closing

 

  • NCDEX and MCX converted into Rs. Candy Rate

 

We hope it will be useful to all the stake holders of Textile Value Chain.

 

  • In the month of February, NY Future experienced a roller coaster ride, fueled by financial support and strategic acquisitions. Breaking through all psychological resistance barriers in the first week, it surged past the 90-point mark for the first time. By the end of first week, there were indications that NY Future might surpass the dollar threshold, reaching a high of 103.80 and closing near 99.57. Overall, NY May futures demonstrated a substantial gain of 13.16 points month-over-month.
  • Amid significant buying activity in the old crop, coupled with a short squeeze, NY May and July experienced notable jumps. However, this upward momentum did not extend to the new crop, particularly NY December, creating a substantial inverse relationship between the two. By the end of the month, the July-December inverse stood at a remarkable 1,396 points.
  • Export sales started the month on a decent note but witnessed a decline in the last week, attributed to higher exchange rates. Currently, the commitment stands at 1,07,13,814 bales, out of which 55,20,353 bales have already been shipped.
  • In the February WASDE report, the U.S. closing was reduced to 2.8 million bales, marking the lowest figure. Consequently, NY Futures reacted with an upward movement. Globally, the ending stock also saw a reduction, reaching 6,80,000 bales.
  • In February, physical cotton arrivals in India surpassed those of previous years, with daily arrivals commencing at approximately 1,80,000 bales and maintaining a consistent level of around 1,10,000 bales by month-end. The state of Gujarat made a steady contribution, ranging between 35,000 to 42,000 bales per day.
  • The physical cotton rates in India remained firm, aligning with the upward trend observed in NY Futures. Gujcot Spot Rate surged from 55,350 to 61,200 Rs per Candy reflecting a remarkable gain of nearly 11% month-over-month.
  • With the support of NY Futures, basis players have made significant purchases, and exporters have also been active buyers in the market.
  • Indian mills are expressing dissatisfaction with the sudden surge in cotton rates. The increase in cotton rates is not being substantiated by corresponding value addition. Despite this, mills are currently utilizing existing inventory at the previous rates, mitigating immediate concerns for them.
  • Throughout the entire month, Indian basis remained consistently negative, reflecting the rapid ascent of NY Futures and a more gradual increase in Indian cotton. The basis expanded from being 100 points off to 900 points off in relation to NY May Futures.
  • In the upcoming month, cotton arrivals are anticipated to slow down, with farmers holding onto some of their produce, leading to a disparity in supply for ginners.
  • Hoping for a better new month.

 

Latest News
PCCA Cotton Market Weekly 19-Jul-2024
  • After trading back and forth throughout the week, cotton futures found support and made marginal gai
U.S. EXPORT SALES
  • 2023-2024 Net Upland Sales 27,200 Upland Shipments 1,13,100 Net Pima Sales 3,800 Pima Shipment
Cleveland on Cotton 12-Jul-2024
  • Bearish Report Keeps a Cap on Cotton Prices These are the fun days in the cotton market. USDA rel