Market Movement from 27th Jan 2025 to 01st Feb 2025.

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• NY futures remain under pressure as funds roll over to May contracts and focus on the fixation of purchased call options.
• NY March futures lost the psychological support of 66 cents, closing below it at a contract low. The contract ended the week with a loss of 173 cents week-over-week.
• U. S. Export Sales have improved, but shipments are still lagging behind.
• In the latest U. S. Export Sales Report for the week ending 23-Jan-2025, U.S. cotton export sales remained strong, with total net sales reaching 2,87,300 bales for the 2024-2025 marketing year. Net upland sales were reported at 2,80,000 bales, while upland shipments totaled 1,53,500 bales. Pima cotton also saw steady activity, with net sales of 7,300 bales and shipments of 7,900 bales. Looking ahead to the 2025-2026 marketing year, net upland sales were recorded at 38,600 bales, while there were no new Pima sales. The overall outlook indicates continued demand for U.S. cotton in global markets.
• The Gujcot Spot Rate started at 53,350 on Monday and showed a downward trend through the week, reaching 53,250 on Tuesday, 53,050 on Wednesday, and 52,850 on Thursday. However, the rate saw a slight recovery on Friday, rising to 52,900, and on Saturday, it was 52,750. The market remained volatile, reflecting fluctuations in demand and supply dynamics.
• In India, daily arrivals remain steady at approximately 175,000 bales, with Maharashtra making the highest contribution.
• The Indian physical market is also under pressure due to the decline in New York futures and the large volume of arrivals. The Cotton Corporation of India (CCI) is purchasing at the Minimum Support Price (MSP) daily, covering half of the total arrivals.
• During this week, the Indian basis remained between 11.52 and 12.03.
• This week, the USD-INR exchange rate showed a steady upward trend, starting at 86.34 on Monday and rising to 86.52 on Tuesday. The rate further increased to 86.54 on Wednesday and reached a peak of 86.63 on Thursday before slightly declining to 86.61 on Friday. Overall, the exchange rate exhibited a gradual appreciation of the USD against the INR throughout the week.
• Hope for best