Posted : June 10, 2023

Market Movement from 10th Apr 2023 to 15th Apr 2023.

  • Cotton futures experience a slight downturn as NY May prices dropped to 82.86 on 14-Apr from 83.20 on 06-Apr, resulting in a weekly loss of 0.34 cents.
  • The cotton market experienced fluctuating prices throughout the week, as producer selling and inflation concerns influenced trading. The USDA's supply-demand report on Tuesday had little impact on the cotton market, while economic reports on Wednesday and Thursday impacted market sentiment. Despite a promising CPI number on Wednesday, cotton prices languished lower due to concerns about overall inflation. However, a "benign" PPI report on Thursday helped to boost cotton prices. Options on spot May futures expired on Friday.
  • According to the USDA-WASDE report for April 2023, the US cotton supply and demand forecast shows higher exports and lower ending stocks compared to the previous month, while production and domestic mill use remain unchanged. The global cotton balance sheet indicates higher production and reduced trade, resulting in higher ending stocks. World production is forecasted to be 8,29,000 bales higher than in March, with the largest increase in China. World ending stocks are projected to be 8,67,000 bales higher, with the largest increase in India due to lower exports. The global trade volume in 2022-23 is expected to decrease, with imports reduced for Bangladesh, China, and Turkey. The marketing year price received by upland cotton producers is projected to average 82 cents per pound, a decrease of 1 cent from the previous month.
  • The U.S. export sales report for the week ending shows that there were 1,43,200 bales of Upland sales and 32,300 bales of Pima sales in the 2022-2023 season. For the 2023-2024 season, net Upland sales were recorded at 11,100 bales, while there were no Pima sales for the same period. The Upland shipments for the week were higher than the net sales, indicating steady demand for U.S. cotton. However, the absence of Pima sales in the 2023-2024 season is something to keep an eye on.
  • Gujcot Sport Rate saw fluctuations throughout the week, hitting a high of 63,350 on Monday and a low of 62,400 on Thursday before ending the week at 62,900 on Saturday.
  • The arrival of cotton in India remained stable during the week, with an average of 1,30,000 to 1,50,000 bales per day. However, the arrival in Gujarat was lower, at approximately 40,000 bales per day.
  • The prices of Gujarat Shankar-6 were volatile throughout the week, with fluctuations in sentiment. However, at the end of the week, the market remained firm in sentiment. The Indian basis remained higher and there was limited export of raw cotton.
  • Selling the yarn remained tough, with no significant improvement in demand seen during the week. Despite some ups and downs, the overall market remained unchanged in NY future and Indian physical cotton.
  • The USD-INR exchange rate witnessed slight fluctuations throughout the week, with the rate starting at 81.98 on Monday, rising to 82.12 on Tuesday, and then falling to 82.07 on Wednesday. On Thursday, the rate decreased further to 81.85, which remained consistent on Friday as well. Overall, the week saw a relatively stable trend in the USD-INR exchange rate.
  • Looking forward, we hope for a better market in the coming week.


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