Gujcot Trade Assocation

GUJCOT WEEKLY REPORT 22-MAR-2025

Posted : March 29, 2025

Market Movement from 17th Mar 2025 to 22nd Mar 2025.

NY futures are melting again due to macroeconomic concerns. Despite strong export shipments, the market has largely ignored this factor. Additionally, cancellations from China have added further pressure. As a result, NY May futures close with a significant weekly loss of 210 points.
In the latest U. S. Export Sales Report for the week ending 13-Mar-2025, U.S. export sales of cotton showed moderate activity. Net upland sales for the 2024-2025 marketing year reached 1,01,100 bales, while shipments were strong at 3,51,000 bales. Pima cotton saw net sales of 26,500 bales with shipments totaling 16,700 bales, bringing total sales for the current marketing year to 1,27,600 bales. Looking ahead to the 2025-2026 season, net upland sales were reported at 57,900 bales, while no Pima sales were recorded for the future season.

The Gujcot Spot Rate showed a steady upward trend in the first half, starting at 53,350 on Monday and gradually increasing to 53,650 by Thursday. However, the rate saw a slight dip on Friday, closing at 53,550, and on Saturday, it stood at 53,500. Market movements reflected stable demand and supply dynamics, with minor fluctuations indicating cautious trading sentiment.
The Indian physical market remained firm due to slow arrivals. The Cotton Corporation of India (CCI) has started offloading the new crop, and mills have responded well. This week, CCI sold 10,57,000 bales. Additionally, CCI has announced its intention to clear all stock before July 31.
During this week, the Indian basis remained between 11.42 and 14.18.
Indian basis rates are higher, and the stronger rupee has widened the gap, making it difficult to secure new orders from abroad. However, mills are willing to book inventory with CCI for good quality, favorable lifting times, and minimal weight shortages. Large mills have already covered their requirements well, so buying activity is expected to slow down next week.
This week, the USD-INR exchange rate showed a steady decline, starting at 86.80 on Monday and gradually decreasing throughout the week. On Tuesday, the rate dropped to 86.57, followed by 86.44 on Wednesday and 86.37 on Thursday. By Friday, it further declined to 85.97, reflecting a consistent weakening of the USD against the INR over the week.
Hope for best