Market Movement from 16th Sep 2024 to 21st Sep 2024.

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• This week began with a limit-up move on Monday, driven by the Federal Reserve's announcement of its first interest rate cut, which triggered some short covering. The following two days saw declines, but on Thursday, a combination of a 50 basis point rate cut by the Fed and improved export sales led to a rebound. Ultimately, the week ended on a bullish note, with the NY December contract closing with a solid gain of 370 points week over week.
• For the week ending September 12, 2024, U.S. export sales for the 2024-2025 marketing year totaled 1,20,800 bales, with net upland sales reaching 1,06,800 bales and net Pima sales at 14,000 bales. Upland shipments were robust at 1,30,000 bales, while Pima shipments totaled 4,500 bales. For the 2025-2026 marketing year, net upland sales were recorded at 10,600 bales, with no Pima sales reported, bringing the total for future crop sales to 10,600 bales.
• The Gujcot Spot Rate fluctuated slightly. On Monday, the rate was recorded at ₹59,950 per candy, followed by a marginal increase to ₹60,000 on Tuesday. It then dipped to ₹59,800 on Wednesday and further dropped to ₹59,650 on Thursday. By Friday, the rate recovered to ₹59,800, and on Saturday, it was 59,800.
• In the Indian physical market, there has been a steady tone, with spot rates remaining within a narrow range. New arrivals have begun in some areas, and following the rest in rains, it is expected that arrivals will accelerate. Consequently, mills are covering their needs more slowly. Additionally, the Cotton Corporation of India (CCI) has struggled to find buyers this week, as mills are hesitant to make purchases.
• Indian mills are set to reduce their cotton consumption due to market disparities. Additionally, delays in imported cotton have created challenges. As a result, mills have opted to stockpile some extra cotton. However, both yarn prices and purchasing activity for yarn remain limited.
• The Indian cotton basis has remained high but has recently narrowed due to an increase in New York futures prices and steady domestic cotton supply in India.
• Indian basis remain between 17.76 to 19.81.
• The total sowing area across India is 1,12,48,300 hectares, with Gujarat contributing 23,66,600 hectares to this total.
• This week, the USD-INR exchange rate showed a gradual downward trend, starting at 83.89 on Monday and closing at 83.56 on Friday. After a slight dip to 83.75 on both Tuesday and Wednesday, the rate continued to decline, reaching 83.68 on Thursday before closing at its lowest point of the week at 83.56. This steady depreciation of the US dollar against the Indian rupee throughout the week indicates a minor but consistent strengthening of the rupee.
• The monsoon activities are currently progressing very slowly, and it is predicted that the monsoon will begin to withdraw in October.
• Let’s hope for the best.