Market Movement from 14th Aug 2023 to 19th Aug 2023.
NY Dec cotton futures exhibited a downward trend, starting at 87.89 cents on 11-August, dipping to 83.62 cents by 18-August, resulting in a weekly loss of 4.27 cents.
After the initial price surge in NY December contract following the USDA's World Agricultural Supply and Demand Estimates (WASDE) report, there was a subsequent cooling down of prices, causing them to revert to their previous range. This moderation in prices can be attributed to the prevailing macroeconomic conditions, which have exerted influence on the market and restrained the forward momentum that had been building.
This week U.S. cotton export sales saw robust activity with 1,86,300 units of net upland sales and 2,02,300 units of upland shipments, accompanied by 3,300 units of net Pima sales and 3,100 units of Pima shipments, culminating in a combined total sales figure of 1,89,600 units. However, the 2024-2025 period reported no net upland or Pima sales, resulting in a total of 0 units for the period.
Export sales demonstrated a level of adequacy, with China emerging as the primary participant driving these sales. However, it is noteworthy that other significant players in the market have not yet displayed keen interest in making purchases.
Throughout the week, the Gujcot Spot Rate displayed slight fluctuations, starting at 61,150 on Monday and slightly rising to 61,350 on Tuesday. It then experienced a marginal dip to 61,300 on Wednesday, followed by a return to 61,150 on Thursday. The week concluded with a rate of 61,000 on Friday.
The Indian physical market has notably stabilized, with a subdued pace in arrivals and a cautious approach to purchasing by mills. This cautious buying pattern has contributed to a sluggish flow of goods within the market.
The total area under cultivation for all of India stands at approximately 121 lakh hectares, with Gujarat accounting for a significant portion of this at 26.7 lakh hectares.
The advancement of the monsoon has been gradual, and there is a prevailing need for rain across all cotton-growing regions.
The basis of cotton pricing in India is notably high, which consequently reduces the likelihood of significant cotton exports.
During the course of the week, the USD-INR exchange rate remained relatively stable. It commenced at 82.95 on Monday and maintained this value through Tuesday and Wednesday. Subsequently, a slight fluctuation was observed, with the rate increasing to 83.14 on Thursday, before moderating to 83.10 on Friday.
There is anticipation that the monsoon patterns will resume in the upcoming week.
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GUJCOT WEEKLY REPORT 30-SEP-2023
Market Movement from 25th Sep 2023 to 30th Sep 2023.
• The ICE December cotton futures traded a