Market Movement from 06th Jan 2025 to 11th Jan 2025.

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• During the week, the New York futures saw some gains. However, following a bearish WASDE report, all gains were relinquished, resulting in a loss of 65 points week-over-week in the NY March contract.
• In the latest U. S. Export Sales Report for the week ending 02-Jan-2025, U.S. export sales of cotton for the 2024-2025 marketing year reported net upland sales of 1,37,400 bales and upland shipments of 1,91,700 bales. Net Pima sales totaled 6,400 bales, with Pima shipments reaching 8,300 bales. Combined, total sales for the week amounted to 1,43,800 bales. No net sales or shipments were recorded for the 2025-2026 marketing year.
• The USDA-WASDE January 2025 report highlights an increase in U.S. cotton production and ending stocks for the 2024-25 season, with production up to 14.4 million bales and ending stocks at 4.8 million bales due to higher yields in several regions and reduced harvested areas in the Southwest. Exports are lowered to 11.0 million bales, and the average farm price is reduced to 65 cents per pound. Globally, cotton production, consumption, trade, and ending stocks are all projected to rise, with notable increases in China’s crop and export growth in Brazil, Australia, and India, despite reduced U.S. exports. Global ending stocks are expected to increase by 1.9 million bales, driven by higher inventories in China, the U.S., Australia, and India.
• The Gujcot Spot Rate exhibited slight fluctuations. The rate opened at 54,050 on Monday, increased to 54,250 on Tuesday, and rose marginally to 54,300 on Wednesday. However, it returned to 54,050 on both Thursday and Friday, maintaining stability through the end of the week. The rate remained steady at 54,050 on Saturday, indicating a relatively stable market trend with minor mid-week variations. The rate on Saturday was 53,900.
• The Indian physical market gained some momentum during the week, but following a bearish trend in the New York futures market, it could not sustain the rise. After reaching the 54,500 mark, it declined to around the 54,000 level.
• A firm cottonseed rate and a slight increase in cotton prices have provided some parity for ginners, allowing them to compete with MSP (Minimum Support Price) procurement. As a result, private ginning has seen some liquidity during the week.
• The total daily arrivals across India have surpassed 200,000, with Maharashtra emerging as a major contributor to this increase.
• The Cotton Corporation of India (CCI) has procured nearly 63 lakh bales to date, yet the prevailing market rates suggest that further procurement may be necessary.
• The Indian basis remained high, fluctuating between 11.64 and 13.18 throughout the week.
• This week, the USD-INR exchange rate exhibited slight fluctuations. On Monday, the rate stood at 85.83, followed by a slight dip to 85.71 on Tuesday. Wednesday saw a marginal increase to 85.84, which continued on Thursday with a rate of 85.85. The week ended with the highest rate of 85.97 on Friday, reflecting a gradual upward trend over the latter part of the week.
• Next week marks a festive celebration! Wishing all our cotton friends a joyous Makar Sankranti, Lohri, and Pongal! May these festivals bring happiness, prosperity, and warmth to your lives.