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.

• Month of April was delighted with bull-run on cotton market. NY May future is close to expiry time but before expiry it has travelled from 135 to 153 cents. July was lead month in last week of April and it rose from 130 to 147 during the month. Ultimately NY May gained 1664 points while NY July gained 1356 points during the month.
• Full month July future was inverted to May future near 200 to 300 points but from old crop July December new crop was highly inverted at 2356 points at the close of the month.
• Weather in Texas and huge on call sale was the main factors for bull run and also rumor of ban on Indian cotton export supported the bull run on NY futures.
• Ukraine - Russia conflict and Covid lockdown in main city of China and demand destruction of mills were the bearish factors but market ignored it.
• U.S. export sale was above the line of USDA projection but shipment was lagging behind to achieve the   target set by the USDA. We might see US export target cut in May WASDE report for current season.
• Indian cotton has slow supply and market leaders looks some short supply due to lower production. So, market has improved from 90,000 to 95,500 during the month.
• Indian mills are losing money so they reduced their consumption from this month and looks to continue their strategy for the rest of the season also.
• Indian basis touched high at 21.80 cents premium to July NY but diluted at the end of the month with some strong rallies on NY futures.
• Indian rupee got weaker from 75.75 to 76.70 Rs per USD and close on 76.45 Rs per USD at the end of the month.
• In next month arrival will slow down. We have to watch U.S. on call, Texas weather, May WASDE, effect of lockdown in China and worldwide demand destruction of raw cotton. All these factors will give huge volatility in coming month.