Market Movement from 05th Dec 2022 to 10th Dec 2022.

• • NY March traded between 80 to 86.50 cents during this week. First two days of the week closed in green but lost all gain in remaining three days due to lower export sales and bearish WASDE. Ultimately NY March closed with loss of 225 points W/W.
  • December WASDE was main event during this week. USDA increased US production by 2 lakh bales, reduce mill consumption of US by one lakh bales and lower US exports so, US ending stock rose from 3 million to 3.5 million bales. USDA also reduced world cotton consumption by 3.25 million bales and world cotton production by 0.70 million bales resulting in 2.29 million bales higher ending stock.
  • Although WASDE was bearish, US Export sales remained disappointing at 34,200 bales for current year and 26,600 bales for next marketing year. Shipment was 1,48,000 bales. Shipment crossed 34.17 lakh bales, which is higher than previous year's 26.25 lakh bales on same time.
  • Indian arrival still not pick up. Indian farmers are strong and not willing to sell at current rate. Slow arrivals has created disparity to ginners. So it is difficult for mills to source cotton at lower price. Although mills are also not earning and yarn demand is also slow so they also are not willing to build big inventory. At present Indian cotton market stands stable.
  • Gujarat Shankar-6 rate remained stable near Rs. 66,500 to 67,000 per candy.
  • Indian rupee got weaker and once touched 83 Rs a USD during the week.
  • Weaker Indian rupee has reduced some basis but yet Indian basis are too high to get export orders.
  • Hope for better arrival in next week.