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.

• January was Bull dominated month. World arrivals and demand were at seasonal peak level. With excellent global consumer demand yarn market was well supported. CCI in India also was able to sell huge quantity. Thus, this month was fundamentally demand run uptrend and so it sustained throughout the month. Some profit taking in futures gave opportunity for short players to square off their short position.
• New US government is sworn in. US restriction against import from Chinese cotton from Xinjiang for slave labors, second lockdown in UK, many other European countries and some cities of China and Bullish WASDE were main event as market mover. Support from equity and grain market has supported bull run in cotton during this month.
• In NY future front month March started its journey from 78.12 cent area and crossed contract high level to 83 cent mark and closed below 81 with monthly gain of 252 points. NY May started at 78.70 to settle at 81.84 with gain of 314 points. Main reason was Bullish WASDE. In January WASDE USDA reduced US crop to nearly 15 M Bales and world’s ending stock reduced to 96 M Bales which gave Bullish turn to the market.  
• U.S. Export Sales was decent and reached to over 13 M bales while shipment was near 6.7 M bales. China was among main buyer of US cotton.
• Indian Physical market also followed world trend. Starts from 42,400 and touched 44,000 Rs per Candy. In last week profit taking and some weak future markets brought prices back to 43,000-43,500 level.
• CCI MSP procurement slowed down after mid of month when market kapas rate crossed MSP rate. Till end January CCI has procured nearly 89 lakh bales.
• CCI was regular seller and sold huge quantity during this month.
• Market predicts that arrival of India has crossed 25 million bales of 170 kgs out of which around 9 million bales were procured by CCI.
• Yarn price was attractive and mills have sold well so Indian mills are covered well from market and CCI. In later part of the month yarn inquiries were dull.
• Indian rupee remained strong around 73 Rs per USD.
• Indian basis remained negative.
• Indian raw cotton export was running in slow pace and nearly 7.50 lakh bales export is estimated during January.
• Overall, January gave good earning opportunity to bulls.