GUJCOT WEEKLY REPORT 25-NOV-2023
Posted : March 02, 2024
Market Movement from 20th Nov 2023 to 25th Nov 2023.
- NY Mar futures traded in narrow range this week. With consecutive large sell to China it covered major loss and recorded a decrease from 81.51 on 17-Nov to 80.99 on 24-Nov, reflecting a week-over-week loss of 0.52 cents.
- In the latest U. S. Export Sales Report for the week ending 16-Nov-2023, U.S. export sales for the 2023-2024 season revealed net upland sales totaling 3,22,200 bales, with upland shipments reaching 77,900 bales. Additionally, net Pima sales amounted to 2,300 bales, and Pima shipments accounted for 3,100 bales, contributing to a total sales figure of 3,24,500 bales. Looking ahead to the 2024-2025 season, net upland sales increased to 5,700 bales, while there were no reported net Pima sales, resulting in a total of 5,700 bales for the period. These figures provide insights into the ongoing dynamics of the cotton market, reflecting the current state of export sales and shipments within the specified time frame.
- The Indian physical market faced pressure from increased arrivals and sluggish demand. The Gujcot Spot Rate displayed fluctuations throughout the weekdays, commencing the week at 56,800 on Monday. It witnessed a slight decline to 56,350 on Tuesday but rebounded on Wednesday, reaching 56,400. Further increasing to 56,500 on Thursday, the trend reversed on Friday with the spot rate dipping to 56,300. Concluding the week, the Gujcot Spot Rate on Saturday touch 56,000 marks the conclusion of the reporting period. Ultimately this week was bear market for Indian physical cotton. These daily fluctuations offer a glimpse into the dynamic nature of the cotton market, portraying the changes in spot rates over the week.
- Following the festival, nationwide cotton arrivals exhibited a substantial increase, averaging around 150,000 bales per day. Gujarat, in particular, contributed significantly with approximately 35,000 bales per day.
- The USD-INR exchange rate demonstrated modest fluctuations. Starting the week at 83.34 on Monday, the rate saw a marginal increase to 83.35 on Tuesday. It then dipped slightly to 83.32 on Wednesday, followed by a return to 83.34 on Thursday. The week concluded with a minor uptick, reaching 83.36 on Friday. These daily variations reflect the ongoing dynamics in the foreign exchange market, providing insights into the relative strength of the U.S. dollar against the Indian rupee throughout the week.
- The yarn market is currently not in good shape, leading to a cautious approach by mills in their purchasing, with buying decisions being made on a hand-to-mouth basis.
- The Indian basis is currently in the range of 500 to 600. Consequently, Indian offers are approaching Cotlook levels. While there is potential for orders with ready dispatch options, the overall demand remains subdued at the moment.
- There have been reports of a slight infestation of pink ball warm in Gujarat; however, farmers are actively taking measures to control the situation.
- Anticipate a substantial increase in arrivals during the upcoming week as well.