Market Movement from 26th Aug 2024 to 31st Aug 2024.

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• The December cotton contract on the New York exchange experienced a volatile week, with several triple-digit swings both up and down. Losses were partly attributed to heavy rainfall in India and Pakistan, which provided some support for the market. However, overall demand remains weak, leading to a weekly decline of 92 points for the December contract.
• Export sales showed improvement, but there was limited buying from China. However, Pakistan emerged as a major buyer, along with some quantity purchased by India.
• In the latest U. S. Export Sales Report for the week ending 22-Aug-2024, U.S. cotton export sales for the 2024-2025 marketing year showed strong demand with net upland sales reaching 1,35,200 bales and upland shipments totaling 1,44,200 bales. Pima cotton also saw significant activity, with net sales of 21,900 bales and shipments of 11,100 bales. This brings the total net sales for the 2024-2025 marketing year to 1,57,100 bales. Looking ahead, the 2025-2026 marketing year reported minimal activity with net upland sales of just 700 bales and no new sales for Pima cotton, bringing total sales for that year to 700 bales.
• The Indian physical cotton market remained firm. The recent heavy rains in cotton-growing areas are expected to cause some crop damage and delay the harvesting season, which is keeping market sentiment positive. Mills are consistently purchasing cotton through auctions held by the Cotton Corporation of India (CCI), and in response, CCI has raised its daily base price.
• The price of Gujcot Shankar 6 cotton has crossed the ₹58,000 mark.
• The Gujcot Spot Rate fluctuated with a steady upward trend. The rate began at ₹57,750 on Monday and increased to ₹58,050 on Tuesday. It continued to rise, reaching ₹58,250 on Wednesday, then slightly dipped to ₹58,150 on Thursday. However, the upward momentum resumed with the rate climbing to ₹58,500 on Friday. The rate for Saturday is 58,600, reflecting the week's overall positive movement in cotton prices.
• The Indian basis currently ranges between 17.54 and 19.95.
• This week, Gujarat experienced heavy rainfall, and other states are also receiving good rainfall.
• The total area under cotton sowing across India has reached 1,11,38,600 hectares, with Gujarat contributing 23,61,100 hectares. However, overall cotton sowing is lower compared to last year.
• This week, the USD-INR exchange rate demonstrated minor fluctuations. It started at 83.90 on Monday and saw a slight increase to 83.92 on Tuesday, followed by another uptick to 83.95 on Wednesday. However, by Thursday, the rate declined to 83.87, and the week ended with the INR slightly strengthening to 83.86 on Friday. Overall, the exchange rate remained relatively stable throughout the week, with only marginal movements.
• "Looking forward to a better season ahead."