Posted : June 10, 2023

Market Movement from 01St May 2023 to 06th May 2023.

  • NY May cotton future closed at 79.03 cents on April 28 and rose to 82.13 cents on May 5, resulting in a weekly gain of 3.10 cents. Traders should note that the contract is set to expire on Monday, 8th May. New York cotton futures for July delivery showed a weekly gain of 3.10 cents, rising from 80.80 cents on April 28th to 83.90 cents on May 5th.
  • The cotton market had a positive start to May due to a friendly jolt in manufacturing data and the Funds being doubly net short. USDA reported no serious delays to the crop progress. However, financial fears caused the market to be sharply lower the next day, with concerns of wobbly banks and higher interest rates. The market played follow the leader on the third day, following the Dow Jones and crude oil down. Positive export-sales reports caused a sharp increase in the market on the fourth day, with shorts covering and new buyers encouraged. The US Labor Department released monthly jobs reports, and while current estimates were calling for 1,80,000 new jobs, U.S. job growth has been falling lately. The weather outlook suggests above-normal chances of precipitation, but West Texas remains in a steep grip of last year's drought.
  • The US cotton export sales for the week ending May 6, 2023, were reported at 2,56,000 bales, with Upland cotton sales totaling 2,31,300 bales and Pima cotton sales at 24,700 bales.
  • The sharp rise in NY futures has caused the Indian basis to remain somewhat lower, due to stable prices in India. However, despite comparative the lower basis, there has not been an increase in demand from abroad.
  • Indian mills are currently struggling to find yarn buyers, which is why even though there has been a spark in NY futures, the Indian physical market has not shown much response to it.
  • The arrival of cotton in India has now reduced to nearly one lakh bales per day, with the major arrival being in Central India only.
  • According, to the Gujcot spot rate showed a mixed trend during the week with a slight increase on Tuesday and Friday. The rates stood at 61,750 on Monday, 61,850 on Tuesday, 61,650 on Wednesday, 61,600 on Thursday, 61,900 on Friday, and 62000 on Saturday. Overall, the market remained relatively stable with minor fluctuations.
  • The USD-INR exchange rate showed minimal fluctuations this week, on Monday at 81.82 and closing on Friday at 81.80. Throughout the week, the exchange rate remained relatively steady, with a high of 81.88 on Tuesday and a low of 81.80 on both Thursday and Friday.
  • Hope for a better week ahead.


Latest News
  • Market Movement from 05th Jun 2023 to 10th Jun 2023. • With a decline of nearly 200 points in J
Cleveland on Cotton
  • Cotton is a Calling Jun 09, 2023 Maybe better news…Cotton had its excitement and is likely s
PCCA Cotton Market Weekly