Gujcot Weekly Report
Posted : May 21, 2019
Market Movement from 15th Apr 2019 to 20th Apr 2019
- After consecutive 5 weeks of gain, NY Future closed this week in red. Option expiry, Rollover to next future and some profit booking put pressure on NY Futures. Export sales were lower than last week but better than pace required to meet the target. US cotton is cheaper and demanded by the world. New crop of Brazil also on the way to give July shipment at the same basis, will compete US and force December NY to stay lower than old crop. Inverse of July December will play vital role to decide long term price factor.
- Indian Physical market remained steady with firm sentiment of ginners and farmers. Indian mills are booked with foreign cotton to avoid panic of no sale motion.
- IMD has predicted Indian monsoon will remain normal as 96% in their first report.
- Indian export is on the holt due to higher prices and Import in full swing on hype of low availability in India. Indian importers have booked nearly 19 lakh bales while export is just shy of 40 lakh bales. Net Outflow of cotton is near 20 lakh bales against last year’s above 50 lakh bales. It is due to lower crop, higher price to compete, no sale sentiment and volatility in currency. As Indian basis have not such higher to allow huge import but sentiment created by situation has put panic to cover long term by import.
- Gujarat 29 mm Cotton sold between 46,450 to 46,750 Rs/Candy.
- All India Daily Arrivals remained between 55,000 to 70,000 bales.
- Gujarat Daily Pressing was approximately 20,000 to 22,000 bales.
- NY May futures w/w lost 0.80 cents.
- Indian Rupee remained stable between 69.35 to 69.60 during this week.