Market Movement from 20th May 2024 to 25th May 2024.

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• After a long time, bulls have a reason to smile. Flooding in Brazil and crop losses in China have created positive sentiment and triggered short covering of speculators, leading to a good rally. New York July contracts closed with a week-over-week gain of 463 points, while December contracts gained 304 points week-over-week. As a result, the inverse spread between July and December widened to 251 points.
• In the latest U. S. Export Sales Report for the week ending 16-May-2024, U.S. export sales for the 2023-2024 season reported net upland sales of 2,03,000 bales and upland shipments of 2,04,100 bales. Net Pima sales were 9,900 bales with Pima shipments totaling 13,300 bales, bringing the total sales for 2023-2024 to 2,12,900 bales. For the 2024-2025 season, net upland sales were 47,900 bales and net Pima sales were 700 bales, making the total sales for the upcoming season 48,600 bales.
• Export sales were decent, but shipment numbers are somewhat lower than needed to meet the target.
• The Gujcot Spot Rate exhibited a fluctuating yet overall upward trend. On Monday, the rate was 56,600, which slightly decreased to 56,400 on Tuesday. It then saw a marginal increase to 56,500 on Wednesday, followed by a more significant rise to 56,800 on Thursday. The week concluded with notable gains, reaching 57,200 on Friday and 57,100 on Saturday. The cotton market showed resilience and a positive movement despite mid-week volatility.
• The Indian basis has now narrowed to around 650 points positive relative to NY July. As a result, the offers from basis players have increased again. Additionally, the CCI has also raised the base price. Indian basis remain between 5.27 to 10.61.
• All India arrivals are approximately 45,000 bales, with Gujarat contributing around 16,000 bales.
• The Indian physical market has also experienced some upward movement, but not to the same extent as NY futures. This is due to sluggish mill demand in India.
• The USD-INR exchange rate demonstrated a consistent downward trend. Starting at 83.33 on Monday, the rate slightly decreased to 83.30 on Tuesday and continued to 83.28 on both Wednesday and Thursday. The week concluded with a further decline, reaching 83.09 on Friday. Overall, the Indian Rupee showed gradual appreciation against the US Dollar throughout the week.