Market Movement from 24th Jun 2024 to 29th Jun 2024.

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• This week started on a bullish note, with short covering driving the market near the psychological number of 75 cents. However, poor export sales and higher planting numbers reversed the trend, bringing the market back to the 72 cents area. New York December closed with a smaller gain of 48 points week over week and loss of 242 points month over month.
• In the latest U. S. Export Sales Report for the week ending 20-Jun-2024, U.S. export sales of cotton showed a mixed performance. For the 2023-2024 marketing year, net upland sales totaled 90,500 bales, while upland shipments reached 1,41,000 bales. Net Pima sales were recorded at 4,800 bales, with shipments amounting to 6,200 bales, bringing the total sales to 95,300 bales. Looking ahead to the 2024-2025 marketing year, net upland sales amounted to 67,600 bales, but net Pima sales saw a decline of 400 bales, resulting in a combined total of 67,200 bales for the period.
• At the current pace, US export shipments require more than 3,00,000 bales per week. If this target is not met, US ending stocks will increase in the current year's balance sheet.
• This week, cotton prices showed a steady upward trend in the Gujarat spot market. Starting at 56,500 Rs per candy on Monday, rates climbed to 56,750 on Tuesday, 57,000 on Wednesday, and continued to rise to 57,400 on Thursday. The upward momentum persisted into Friday, reaching 57,750. On Saturday, the rate was 57,550 Rs per candy. Overall, the market saw consistent increases throughout the week.
• All India arrivals remain in the range of 25,000-30,000 bales per day. Due to the new MSP, some mills were in a panic to buy. Consequently, there were significant bargains at CCI, but still a large quantity is available with CCI.
• Indian basis prices are high, making it difficult for mills to find buyers. As a result, mill purchases are slow. Additionally, yarn demand is sluggish.
• Indian basis remains between 11.66 to 15.65 against NY Dec future.
• This week, the USD-INR exchange rate experienced slight fluctuations. It started at 83.46 on Monday, decreased marginally to 83.43 on Tuesday, then increased to 83.57 on Wednesday. By Thursday, it returned to 83.46, and finally dropped to 83.38 on Friday. Overall, the exchange rate showed minor variation throughout the week.
• Monsoon progress was slower in June, but with the anticipation of good rainfall, sowing is proceeding faster compared to last year.
• We are hoping for the best monsoon in July.