Market Movement from 21st Oct 2024 to 26th Oct 2024.

•  
• In the beginning of the week, the NY December contract saw an uptick, crossing the 72 cents/lbs level. However, as the week progressed, prices gradually declined. Geopolitical tensions and slower export demand contributed to this downward pressure, ultimately resulting in a weekly loss of 33 points for the NY December contract.
• In the latest U. S. Export Sales Report for the week ending 17-Oct-2024, U.S. export sales of cotton showed solid activity for the 2024-2025 marketing year. Net upland sales reached 169,600 bales, with upland shipments totaling 98,400 bales. In the Pima category, net sales amounted to 4,400 bales, with 4,200 bales shipped. This brings the total weekly sales for all cotton types to 174,000 bales. There were no reported sales for the 2025-2026 marketing year, indicating that demand is currently focused on the near-term season.
• The Gujcot Spot Rate showed a consistent decline. On Monday, the rate started at 56,000 Rs per candy, dropping slightly to 55,900 on Tuesday, then to 55,750 on Wednesday, and 55,700 on Thursday. By Friday, the rate further decreased to 55,500, reflecting a steady downward trend. The market appeared soft throughout the week, with prices gradually easing down each day, ending with a rate of 54,900 Rs per candy on Saturday.
• The Indian physical cotton market is currently experiencing increased arrival pressure alongside sluggish demand. Nationwide, daily arrivals have now surpassed 1,00,000 bales, while demand remains weak. Although the Cotton Corporation of India (CCI) has begun procurement in some regions, natural moisture content in kapas (seed cotton) is high, failing to meet CCI's quality standards, which has limited their purchases. The combination of high arrivals, low demand, and a cash crunch is exerting downward pressure on market prices, keeping Indian physical cotton rates under pressure throughout the week.
• Indian mills are facing challenges in finding export buyers for yarn due to high prices and sluggish demand. As a result, they are compelled to sell on credit in domestic market, leading to a cash crunch for the mills.
• The Indian basis remains steady, despite back-to-back downward trends in both New York and Indian markets. Currently, the Indian basis is between 12.06 to 13.53 cents per lbs.
• Cyclone Dana made landfall in Odisha but did not impact the cotton-growing areas. The monsoon has officially withdrawn from India.
• This week, the USD-INR exchange rate exhibited minimal fluctuation, beginning at 84.07 Rs per USD on Monday and stabilizing at 84.08 Rs per USD for the rest of the week from Tuesday through Friday.
• Next week is festival week in India, so ginning operations and arrivals will slow down.
• May this Diwali light up new dreams and bring fresh hopes to all our cotton friends. May the coming year bring fair prices and prosperous earnings to all stakeholders.