Market Movement from 24th Apr 2023 to 29th Apr 2023.
The cotton market saw a slight gain this week, with NY May prices increasing from 78.41 on 21-Apr to 79.03 on 28-Apr, resulting in a weekly gain of 0.62 cents. However, the market experienced a significant loss in the past month, as NY May prices dropped from 82.78 on 31-Mar to 79.03 on 28-Apr, resulting in a monthly loss of 3.75 cents.
In the cotton market, traders engaged in end-of-month squaring, short-covering, and preparing for next week's interest rate hike from the US Federal Reserve. USDA provided updates on the planting progress and export sales data. West Texas and parts of the Southeast remained in drought conditions, but the latest outlooks indicate above-normal chances of rainfall. President Biden's announcement to seek another presidential term and new bank solvency jitters affected the market negatively. Cotton's immediate technical trend appears bearish with an increase in open interest.
The U.S. Export Sales report for cotton in the week ending shows strong demand for U.S. cotton with net upland sales of 1,94,900 bales and net Pima sales of 16,700 bales for the 2022-2023 crop year. Upland shipments totaled 3,98,400 bales, and Pima shipments amounted to 20,600 bales. The total sales for the week were 2,11,600 bales. For the 2023-2024 crop year, net upland sales were reported at 19,100 bales, with no Pima sales. Overall, the outlook is positive for U.S. cotton producers.
The Indian cotton market is currently experiencing a bearish trend with limited buying activity. The price of Shankar 6 cotton variety is fluctuating between 61,200 to 61,700 Rs per candy, which is close to the lower end of the long-term sideways trend. The daily arrival of cotton in India is steady at around 125,000 bales per day, while Gujarat's arrival remains at about 40,000 bales per day.
The Indian basis (the difference between the local price and the international price) remains high, despite the decline in the New York cotton future market. However, the Indian yarn market is facing slow demand and some cash crunch, which is causing mills to delay their coverage.
During this week, the USD-INR exchange rate exhibited very low fluctuation. It began at 81.90 on Monday and slightly increased to 81.91 on Tuesday. However, it dropped to 81.76 on Wednesday. The rate recovered slightly to 81.83 on Thursday but closed the week at 81.82 on Friday. Overall, the USD-INR exchange rate experienced minimal variation throughout the week, reflecting a relatively steady performance.
Overall last week was remain bearish with slow demand.
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