Market Movement from 08th Jul 2024 to 13th Jul 2024.
• This week, lower US exports and shipments, along with a bearish to neutral WASDE report, put pressure on cotton prices. However, at the low seventy level, the rate did not seem attractive for short selling. As a result, the market ignored all bearish fundamentals and closed nearly unchanged, with a gain of 29 points week-over-week.
COTTON: The July U.S. cotton projections for 2024/25 show higher acreage, production, and beginning and ending stocks compared to last month. Projected domestic use and exports are unchanged. U.S. planted area is 1 million acres higher, as indicated in the June Acreage report, leading to a 1-million-bale increase in the crop projection to 17.0 million bales. Ending stocks are 1.2 million bales higher at 5.3 million, or 36 percent of use, primarily due to the larger projected crop.
Cotton Plantings Report Surprises Market, Potential for Better Prices Remains
Despite the very bearish USDA June plantings report, the potential for higher 2024 crop prices remains on track. Recall, we warned that higher prices would come very, very slowly and only bit by bit.
Gujcot Third Quarterly Rate Movement Report - 2023-24
• The April-June quarter was marked by significant volatility and a major downturn in the cotton market.
• NY Futures for May and July started near 93 cents, with April experiencing a continuous downtrend. In May, the front month was July, and prices remained in a narrow range of 77 to 85 cents. However, in June, the market crashed again, reaching the low 70s. By the end of June, December, as the front month, closed at 72.69 cents.