Market Movement from 03rd Apr 2023 to 08th Apr 2023.
During the week cotton prices gained with the NY May future contract rising from 82.78 cents to 83.20 cents, an increase of 0.42 cents. The market was relatively stable until 5th of April but prices began to rise after 5th due to a weaker US dollar and lower-than-expected US planting intentions. Cotton traders are closely monitoring global economic and political developments, as well as weather patterns in key growing regions, to anticipate future price movements.
On Monday, despite positive reactions by surrounding markets to OPEC's reducing global production, cotton prices fell back into its sideways/bearish funk. The managed-money funds remained net short, and supposedly there is also a hefty amount of unpriced 2022 production with growers. On Tuesday, the cotton market was sharply lower due to farmer fixations. It has been widely believed that a huge supply of unpriced cotton was held over from last year. On Wednesday, the cotton market was starkly quiet, lacking any direct positive fundamentals, as well as dopey outside markets.
On Thursday, USDA issued its weekly export sales, with China leading in both sales and shipments. On Friday, the U.S. markets were closed in observance of Good Friday/Easter, and CFTC's Commitments of Traders report was released in the afternoon, showing that managed-money traders were net short by some 23,475 contracts.
For the week ending on March 30, 2023, U.S. export sales showed a total of 1,69,500 bales sold. Of these, net Upland sales were 1,60,500 bales, while net Pima sales were 9,000 bales. Upland shipments amounted to 2,50,100 bales, while Pima shipments were 1,500 bales.
Looking ahead to the 2023-2024 season, U.S. export sales showed a total of 16,700 bales sold. Net Upland sales amounted to 15,900 bales, while net Pima sales were 800 bales.
Indian market sentiment has turned bullish. Farmer got 500 Rs. Per quintal increase in kapas prices, with uptrend in cotton as well as in cotton seed prices. Gujcot Spot Rate again touched near 63,000 from last week low of 59,900. Speedy and sudden uptrend converted farmers and ginners mind set bullish.
Arrival in India was steady near 1,25,000 bales a day and Gujarat between 35,000 to 40,000 bales a day.
NY future and Indian cotton both have back to back following uptrend. Indian basis was again strong near 1,400 to 1,500 to NY May future.
Indian raw cotton export is slow and also it is challenging to get yarn export order in global market.
Hope for better next week.
GUJCOT WEEKLY REPORT 10-JUN-2023
Market Movement from 05th Jun 2023 to 10th Jun 2023.
• With a decline of nearly 200 points in J