Market Movement from 12th Aug 2024 to 17th Aug 2024.

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• A sharp cut in U.S. production in the WASDE report gave a boost to the bulls as prices briefly crossed the 70-cent mark on Monday. However, weaker fundamentals soon erased those gains, and by the end of the week, NY December futures hovered around 67 cents per pound. The contract eventually closed with a loss of 110 points.
• The August 2024 USDA-WASDE report on cotton shows a reduction in U.S. cotton production, exports, and ending stocks for the 2024-25 season, with harvested acreage down 11% from July's forecast. U.S. production is estimated at 15.1 million bales, a drop of 1.9 million bales from last month, and exports are reduced by 1 million bales due to lower global trade. Ending stocks are down by 8,00,000 bales to 4.5 million bales. Global cotton production and consumption are also revised downward, with world ending stocks reduced by 5 million bales to 77.6 million. The "A" Index, a proxy for world cotton prices, is reduced to 81.5 cents per pound.
• In the latest U. S. Export Sales Report for the week ending 08-Aug-2024, U.S. export sales of cotton saw a strong performance for the 2024-2025 marketing year. Net upland sales reached 1,11,000 bales, while upland shipments totaled 1,31,300 bales. In the Pima category, net sales amounted to 22,400 bales, with shipments reaching 8,600 bales. Overall, total sales for both upland and Pima cotton combined amounted to 1,33,400 bales. Looking ahead to the 2025-2026 marketing year, net upland sales were minimal at 400 bales, with no Pima sales recorded for the week.
• This week, the Gujcot Spot Rate showed moderate fluctuations. On Monday, the rate was recorded at 56,800 Rs per candy, which saw a slight increase on Tuesday to 56,900. The upward trend continued on Wednesday, reaching 56,950. However, the rate dipped slightly on Thursday to 56,750, remaining stable at this value on Friday and 56,650 on Saturday.
• The Indian physical cotton market is not following the bearish trend seen in the New York futures and has remained steady. The Cotton Corporation of India (CCI) is once again seeing regular buyers.
• The Indian basis is currently very high, leading Indian mills to continue making import bookings. The Indian basis remains within the range of 17.23 to 19.48 during this week.
• The total area of cotton sowing across India is 1,10,49,000 hectares as per the latest report.
• The cotton sowing area in Gujarat is 23,47,300 hectares as per the latest report.
• The USD-INR exchange rate remained stable across all trading days, holding steady at 83.95 from Monday through Friday. The consistent exchange rate reflects minimal fluctuations in the currency markets over the course of the week, suggesting a period of relative calm in the exchange dynamics between the US Dollar and Indian Rupee.
• "Monsoon progress is favorable in the cotton-growing areas."
• "Hope for the best."