Market Movement from 19th Aug 2024 to 24th Aug 2024.

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• After a long wait, this week brought some positive news for the bulls. A weaker dollar, poor crop conditions in Detroit, and some short covering helped pull the market back above 70 cents for the first time in a while. The NY December contract closed with a week-over-week gain of 367 points.
• In the latest U. S. Export Sales Report for the week ending 15-Aug-2024, U.S. export sales of cotton showed moderate activity. Net sales for the 2024-2025 marketing year included 93,000 bales of Upland cotton and 8,200 bales of Pima cotton, with total shipments amounting to 1,68,800 bales of Upland and 5,100 bales of Pima. Overall, total sales for the week reached 1,01,200 bales. Looking ahead to the 2025-2026 marketing year, sales were minimal, with only 4,900 bales of Upland cotton recorded, while no sales were made for Pima.
• This week, Gujcot Spot Rate displayed a steady upward trend. Starting at ₹56,750 on Monday, it gradually increased to ₹56,900 on Tuesday, ₹57,000 on Wednesday, and ₹57,200 on Thursday. The upward momentum continued with the rate reaching ₹57,350 on Friday. The final rate for Saturday is ₹57,450, marking a week of consistent growth in the cotton market.
• The Indian physical market witnessed excellent buying activity this week, with the Cotton Corporation of India (CCI) offloading a significant quantity of cotton. Ginners now have limited stocks left to sell, forcing mills to turn to CCI for their cotton needs. The price of Gujcot Shankar 6 has crossed the ₹57,000 per candy mark, and it continues to rise steadily, signaling strong demand from mills.
• The Indian basis remains within the range of 16.25 to 17.57.
• As of now, cotton sowing across India has reached 1,11,07,000 hectares, which is significantly lower compared to the same period last year. In Gujarat, cotton sowing stands at 23,58,000 hectares, showing a nearly 12% decline compared to last year.
• The monsoon is progressing well. This week brought much-needed rain, which has positively impacted crop growth.
• The USD-INR exchange rate remained stable at 83.95 from Monday to Thursday, showing no significant fluctuations. On Friday, however, the rate experienced a slight dip to 83.89, indicating a minor adjustment by the end of the week. The overall trend suggests steady market conditions with minimal volatility in the currency exchange rate.
• Hope for a better season ahead.