Market Movement from 18th Mar 2024 to 23rd Mar 2024.
The future outlook suggests a further decline in May future due to certified stock weight. In the week ending May, there was a loss of 241 points, followed by a 174-point loss in July. Consequently, July now carries an inverse trend. However, there's a slight improvement in the new crop December, gaining 27 points week over week. As a result, the inverse has narrowed to 790 points with July futures.
The US export shipment performance has been robust, surpassing the set targets and continuing to perform well.
In the latest US Export Sales Report for the week ending 14-March-2024, there were notable figures reflecting a decrease in sales compared to the previous period. Upland sales amounted to 92,600 bales with shipments totaling 3,97,300 bales, while Pima sales were 2,100 bales with shipments at 1,200 bales, resulting in a total of 94,700 bales for the 2023-2024 season. However, for the 2024-2025 season, there was a decline in net upland sales to 40,500 bales, with no reported Pima sales, leading to a total of 40,500 bales for the week.
This week Gujcot Spot Rates dropped by Rs 850 per candy, starting at 61,550 on Monday, dipping to 61,200 on Tuesday, further decreasing to 60,900 on Wednesday, and stabilizing slightly at 60,750 on Thursday. However, the downward trend persisted, with rates dropping to 60,450 on Friday and settled at 60,250 Rs per Candy on Saturday.
The daily physical arrival of Indian cotton has witnessed a notable decline, reaching around 90,000 bales. Gujarat alone contributes 30,000 bales per day to this total.
The Indian physical market is experiencing pressure due sharp fall in future market, decreased demand, and some cash constraints. Both ginners and mills are holding substantial stocks, leading mills to adopt a more cautious approach in covering their cotton needs.
CCI and merchants are offering cotton on a daily basis, and some transactions are also being conducted for long-term delivery contracts.
Indian basis has continued into positive territory, ranging from 0.13 to 1.24.
As the Holi festival approaches, followed closely by the end of the fiscal year, it's anticipated that there will be limited arrivals and trade activity in the coming days.
Throughout the week, the USD-INR exchange rate exhibited a varied pattern, commencing at 82.90 on Monday, slightly increasing to 83.03 on Tuesday, and further climbing to 83.15 by Wednesday. Thursday saw a marginal decrease to 83.14, but the trend reversed on Friday as the exchange rate surged to 83.42, reflecting a mixed week with intermittent fluctuations in the USD-INR exchange rate.
Wishing a Happy Holi to all our cotton friends!
Latest News
GUJCOT WEEKLY REPORT 05-OCT-2024
Market Movement from 30th Sep 2024 to 05th Oct 2024.
• NY Dec futures moved from 72.72 cents/lb