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.

• August month was bull dominating month. The closing of ginning due to festivals and rain disrupted cotton supply so, Indian physical market also got a good bull run. Adding fuel to the bull run was the highest sales of CCI and daily increasing CCI price list supported by NY future. Only bear factor worked at the end of the month was appreciation of Indian rupee but due to shortage of supply market ignored it.
• NY December remained firm due to following factors.
• USDA WASDE estimated US crop to be 18 million bales but market sources feel that crop will be lower than the USDA estimate.
• Some damage to the US crop by Hurricane flora during the month will be reflected in September WASDE.
• Carried forward export sales were handsome and a new season started with over 6 million bales commitment.
• China is honoring phase one of US-China trade deal and is regular buyer of US cotton and also shipment to China was in a big quantity.
• Overall, as first month of season and very negligible arrival export sales were poor but old stock shipment was better in August.
• Indian cotton was the cheapest so Indian exporters were optimistic to get good orders from abroad.
• Indian mills also get good inquiry of yarn from abroad. Yarn market surged nearly 10 to 15 Rs per kg. So there was good buying from domestic mills in cotton.
• Exporters, Basis players and domestic buyers pulled Indian physical market upwards. Price gap of Indian cotton and other origins in the international market has narrowed now.
• CCI and Maharashtra federation jointly offloaded nearly 58 lakh bales. Still a lot of cotton for resale with traders and MNCs. Some new crop is knocking on the door.
• All India cotton sowing area at the record high and surpassed the last year’s area by nearly 3% to 128 lakh hectares.
• Gujarat’s farmers diverted to groundnut so Gujarat cotton sowing reduced to 15% to stay below 23 lakh hectares.
• Weather was the main factor to create sentiment. It was continuously raining in many cotton belts and damaging some crops in several areas. Some infestation of whitefly and others also reported.
• Gujcot spot rate surged from 33,200 to 35,900, a huge one-month gain.
• NY future December gained from 
• Indian rupee remained stronger from  
• First time we see noticeable old crop arrivals in India in August. Due to lockdown lot of kapas remained with farmers. Mills have earned during month also ginners had good parity during the month.  August was Bull month and gave opportunities to earn in Futures, Ginning, On basis to NY, Trading from CCI cotton, Export of various lower varieties available in India and also from spinning.
• The month of August has given a smile on the face of all stakeholders. Wish the same to continue forward.