Market Movement from 13th Feb 2023 to 18th Feb 2023.
The cotton market fell sharply during this week due to rising fears of a recession, weak demand, and higher interest rates. Stronger U.S. dollar also contributed to the bearish sentiment.
Cotton prices in New York dropped significantly this week, with the March contract settling at 85.27 on February 10th and 80.25 on February 17th with weekly decline of 5.02 cents. The March contract is due to enter delivery period next week.
Export-sales data was reported as respectable, but traders feared that Turkey demand may slow down or cancel sales due to a recent earthquake, while consumer debt and discretionary income remained weak.
This week, the cotton market ended lower as outside bearish forces weighed on the trade.
This week's U.S. export sales report showed strong growth in net upland sales for 2022-2023, with a total of 2,17,000 bales sold. Upland shipments were also high, at 1,86,400 bales. Net Pima sales saw a slight increase, totaling 2,000 bales, with shipments of 6,900. For 2023-2024, net upland sales were reported at 23,900 bales, with no Pima sales reported. Overall, a solid week for U.S. cotton exports.
According to NCC Survey U. S. farmer’s intend to saw cotton in 11.4 million hectares.
This week, the Shankar-6 price range of Gujcot Spot Rate remained in wide range, starting at 62,450 on Monday and reaching a high of 63,100 on Wednesday before falling back to the closing price of 62,400 on Saturday.
Gujarat V-797 was volatile in huge range from 48,000 to 45,500.
This week, the USD-INR exchange rate closed at 82.83, representing a slight weaker from last week's rate of 82.49.
Indian daily arrival did not cross 1,50,000 bales and did not go below 1,25,000 bales. Lower arrival is not giving any opportunity to ginning to earn.
Indian spinners now run near to full capacity but some finer count spinning resulted in some lower consumption.
With sharp drop in NY future and steady Indian rate cotton physical rate Indian basis increased to near 1,600 points.
Indian mills were able to book export orders of yarn but raw cotton export is negligible.
Hope for better week ahead
GUJCOT WEEKLY REPORT 25-MAR-2023
Market Movement from 20th Mar 2023 to 25th Mar 2023.
• NY May prices experienced a weekly loss