Market Movement from 15th May 2023 to 20th May 2023.
NY Jul cotton future closed at 80.53 cents on May 12 and rose to 86.72 cents on May 19, resulting in a W/W gain of 6.19 cents.
During the week of May 15 to May 19, 2023, the cotton market experienced significant gains despite declines in other markets. Positive performance in grains, energies, and metals contributed to the upward trend. Traders reacted positively to supply-demand updates and increased their net-long positions. The weather forecast indicated rainfall in the US southwest region, and the outlook for the coming days showed above-average chances of precipitation. Retail sales numbers were viewed as neutral to bearish, and traders closely followed the ongoing debt ceiling negotiations. Rumors of strong US export sales numbers further boosted the cotton market.
The U.S. cotton export sales for the 2022-2023 season was 132,500 bales of upland cotton and 9,500 bales of Pima cotton. Shipments for upland cotton reached 332,700 bales and 14,600 bales for Pima cotton, resulting in a total of 142,000 bales sold. However, for the 2023-2024 season, there has been a decline in net upland sales, with only 28,100 bales sold and no reported sales of Pima cotton. It is important to monitor market conditions and factors such as demand, prices, and supply to better understand these changes.
Indian physical market experience selling pressure from farmers and despite spark in NY future Indian market trend was opposite direction. NY future rise near 7% W/W while Indian physical cotton market was downward.
The Gujcot Spot Rate lowered from 59,650 Rs per candy on Monday to 58,750 Rs per candy on Saturday.
The USD-INR exchange rate displayed some volatility during the week. It started the week with a modest rate on Monday, followed by a slight decrease on Tuesday. However, the rate rebounded on Wednesday and continued to rise on Thursday. The week concluded with the exchange rate settling at a higher level on Friday at 82.66 Rs per USD.
Indian basis was 10.09 cents on Monday and 3.94 cents on Saturday, a significant fall during this week.Indian basis is now very much attractive so basis players specially MNCs are daily buyers in cotton market.
Yarn sales remain sluggish during this week despite lower prices of Indian cotton.
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