Market Movement from 30th Dec 2024 to 04th Jan 2025.

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• Another week of weekly declines in NY March futures. On Wednesday, there were some gains in NY March futures, but due to weaker export sales, market sentiment shifted, leading to a weekly loss of 123 points.
• Export sales and shipments both fell short of market expectations.
• In the latest U. S. Export Sales Report for the week ending 26-Dec-2024, U.S. export sales for the 2024-2025 marketing year recorded net upland sales of 1,28,900 bales, with shipments totaling 1,15,800 bales. Pima cotton saw net sales of 1,700 bales and shipments of 6,500 bales. Combined, total sales for the current marketing year amounted to 1,30,600 bales. For the 2025-2026 marketing year, net upland sales reached 5,300 bales, with no recorded Pima sales, bringing the total for the next marketing year to 5,300 bales.
• The Gujcot Spot Rate demonstrated a steady upward trend. Starting at 53,650 on Monday, the rate increased to 53,750 on Tuesday and remained stable on Wednesday. On Thursday, it rose further to 53,950, followed by another increment to 54,050 on Friday, and on Saturday, it was 54,150. The trend reflects gradual price strengthening in the cotton market throughout the week.
• In India, with significant support from the Cotton Corporation of India (CCI), the market continues to show an upward trend. However, due to disparities in the market, private ginning operations remain slow, making it challenging to source raw materials for mills. Despite these difficulties, the Indian physical market has shown positive indications. Gradually, the market crossed the 54,000 mark and, by the end of the week, managed to stay above this level, even amid weaker NY futures.
• With a weaker New York futures market and an upward trend in the Indian physical market, the Indian basis is likely to rise further. Indian basis remain between 11.53 to 12.87. Some what higher compare to last week.
• Daily arrivals in Maharashtra have now surged, surpassing 75,000 per day. In contrast, Gujarat and northern regions are still lagging behind their usual pace.
• The all-India cotton arrivals on working days are approximately 2,25,000+ bales per day, while on the remaining two days, the arrivals are around 1,25,000 bales per day.
• The USD-INR exchange rate showed a consistent upward trend throughout the week. Starting at 85.53 on Monday, it increased slightly to 85.61 on Tuesday and further to 85.64 on Wednesday. The upward momentum continued with the rate climbing to 85.75 on Thursday and closing at 85.77 on Friday. This gradual appreciation of the USD against the INR highlights sustained pressure on the Indian Rupee during the week.
• May the new year bring joy and prosperity to the entire textile value chain. Let us hope for the best!