Monthly Rate Movement Report – February 2019
Dear All Cotton Friends,
In mission to give Daily Spot Rate Team Gujarat is getting valuable support from Gujcot broker panel. We appreciated their humble service to trade. Gujcot Team is giving daily closing of Indian and foreign futures rate.
In this report we have provided Following Rates during the month.
We hope it will be useful to all the stake holders of Textile Value Chain.
Month of February started with higher rates but in by mid-February the inconclusive US-China trade negotiations changed the market sentiment. USDA released WASDE Report for Last two months. WASDE Report was generally neutral but market takes it as bearish. NY May future draw down to 71.11 from 74.93 areas. Due to Government shutdown in U.S., there was absence of true data. Some data was released gradually and market recovered. On 22nd February USDA cleared the backlog of US Export Sales data. US Export Sales are good and easy to match the export target set by USDA but shipment is lagging behind.
Due to holidays in China, during starting period of the month there was very limited demand from china in global market. Regular and limited demand from other countries kept the prices range bound.
Indian physical market also followed NY and Global market. Gujcot Spot rate started at 43,000 levels and ended at 42,200 levels. In Indian physical Market movements were slow and consumers purchased without any panic. Indian arrivals were sufficient to meet the demand of mills and exporters. In last part of the month rate was near and below to MSP, so CCI did good procurement. By end February CCI procured approximately 9 lakh bales and MCX had stock of 1,90,000 bales in their warehouses.
As basis are not working well but MNC’s are short in India and they have to buy continuously to give delivery against committed sale. By the end of February mills are covered with one month to three month as per their financial capacity. Farmers are holding good qualities of Kapas. Season looks running slow and lengthy. Yarn movement is good and mills are booked for at least 30 days forward. Export of yarn also robust. In domestic sales rate of yarns are good but long payment period is the issue.
Gujarat total Pressing will cross approximately 60 Lakh bales of 170 Kg. During the month of March trade might see tight fund situation because of financial year ending. Limited arrivals will not put pressure on rate and cotton rates may remain stable or may move upwards.