Market Movement from 05th Aug 2024 to 10th Aug 2024.

• In the first four days of the week, NY futures traded near 67 cents per lbs. Although the price dipped below 67 cents during intraday trading, there was strong support at that level. On the last day of the week, the market found some momentum, bolstered by good export numbers and short-covering at the support level.
• New York December cotton futures remained mostly unchanged week-over-week, gaining just 9 points. Other contracts, however, ended the week in the red.
• In the latest U. S. Export Sales Report for the week ending 01-Aug-2024, For the 2024-2025 marketing year, net sales of Upland cotton were significantly reduced by 9,49,600 RB, with major decreases in China, Pakistan, and Vietnam, despite gains in countries like India, Mexico, and Costa Rica. A total of 9,79,900 RB from the 2023-2024 marketing year were carried over. Exports as of July 31 totaled 1,10,70,400 RB, marking a 6% decline from the previous year, with China, Vietnam, and Pakistan being the primary destinations. For Pima cotton, net sales for 2024-2025 reached 7,700 RB, with increases in Vietnam and India, while exports totaled 3,21,800 RB, a 6% increase from the previous year.
• This week, the Gujcot Spot Rate showed a consistent downward trend. Starting at 56,750 Rs per candy on Monday, the rate gradually declined to 56,600 on Tuesday, 56,500 on Wednesday, and 56,400 on both Thursday and Friday, with the rate remaining stable at 56,400 on Saturday. This pattern indicates a slight but steady decrease in cotton prices throughout the week, with the rate on Saturday being 56,600 Rs per candy.
• The Indian physical cotton market is under pressure as mills are purchasing at a slow pace. Despite offering favorable lifting periods, the Cotton Corporation of India (CCI) is struggling to attract buyers. Ginners are also beginning to panic due to the lack of demand.
• The basis prices in India remain high, leading many mills to consider booking imports for the next season as well.
• The Indian basis currently ranges between 17.35 and 18.70.
• The total area sown across India is 1,08,42,800 hectares, with Gujarat contributing 23,35,500 hectares of this total.
• This week, the USD-INR exchange rate exhibited stability, starting at 83.84 on Monday and experiencing only minor fluctuations throughout the week. On Tuesday, the rate increased slightly to 83.95, remaining constant on Wednesday. Thursday saw a marginal rise to 83.96, before reverting back to 83.95 on Friday. This consistency indicates a relatively steady currency market for the week.
• The monsoon progress across the entire cotton-growing region has been uneven. In Gujarat, some areas have experienced excessive rainfall, while others are in serious need of rain.
• Hope for the best.