Posted : March 02, 2024

Market Movement from 29th Jan 2024 to 03rd Feb 2024.

  • This week witnessed a bullish trend in the New York future market. Supported by strong export sales and impressive shipment figures, NY Future for March broke through and closed above 87 cents for the first time, registering a substantial gain of 274 points.
  • In the latest U. S. Export Sales Report for the week ending 25-Jan-2024, U.S. export sales for the 2023-2024 season revealed net upland sales of 3,49,400 bales and upland shipments of 3,96,700 bales. Additionally, there were net Pima sales of 13,500 bales and Pima shipments of 11,200 bales, bringing the total sales for the week to 3,62,900 bales. Looking ahead to the 2024-2025 season, there were net upland sales of 25,200 bales and no reported net Pima sales, resulting in a total of 25,200 bales for the upcoming season.
  • This week's Cotton Weekly Report reflects minor fluctuations in Gujcot Spot Rates, starting at 55,550 on Monday and experiencing slight variations throughout the week. Tuesday saw a marginal decrease to 55,150, followed by a modest increase to 55,350 on both Wednesday and Thursday. The rates remained unchanged on Friday at 55,550, and on Saturday 55,650. Overall, the cotton market displayed relatively stable pricing trends with limited deviations during the week.
  • The Indian physical price did not experience a significant upward movement in alignment with the New York futures, primarily attributed to substantial arrivals and a cash crunch at mills. Despite the challenges, the Indian physical market remained steady to firm, showcasing resilience in the face of the considerable influx of supplies.
  • Mills have received substantial orders for yarn from both domestic and international markets, prompting them to actively engage in covering their cotton positions.
  • The overall daily cotton arrivals across India are consistently hovering around 1,80,000 to 2,00,000, with Gujarat making a noteworthy contribution of 45,000 bales per day.
  • Due to improved arrivals, ginning operations are running smoothly on a daily basis, ensuring good liquidity. However, despite the significant inflow, the off-take of cotton seeds has been sluggish, leading to a substantial accumulation of cotton seed stocks with ginners.
  • Indian basis turned negative for the first time this season, creating a favorable environment for basis players to actively participate in the market. Additionally, the attractive basis made raw cotton exports a viable option.
  • Indian basis remains within the range of 0.97 & -1.65, providing a reference for market dynamics and influencing trading decisions.
  • This week's the USD-INR Exchange Rate, commencing at 83.13 on Monday and gradually declining throughout the week. Tuesday witnessed a slight decrease to 83.10, followed by a further decline to 83.04 on Wednesday and 82.96 on Thursday. The downward trend continued into Friday, closing the week at 82.91. These variations indicate a weakening of the Indian rupee against the US dollar over the course of the week.
  • Farmers are still willing to sell their produce. This suggests that there is a likelihood of good arrivals continuing into the next week.    

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