Dear All Cotton Friends,

In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciated their humble service to the trade. Gujcot Team is giving daily closing of Indian and foreign futures rates.

In this report we have provided Following Rates during the month.

• Daily Physical Spot Rate

• MCX Cotton Daily Closing Rate

• USD-INR Exchange Rate Closing

• Cotlook Index

• ICE Future Closing

• NCDEX Kapas Rate

• MCX Future Closing

• NCDEX and MCX converted into Rs. Candy Rate

We hope it will be useful to all the stake holders of Textile Value Chain.

• During the month of May 2025, the NY July ICE cotton contract exhibited a generally bearish trend. The month began on a strong note with a brief rally in the early days. However, this upward momentum quickly faded as the market came under consistent downward pressure. Mid-month was marked by heightened volatility, with prices dipping to their lowest levels before staging a modest recovery. Despite a brief period of stability, the contract ended the month lower than its opening level. Overall, the contract registered a month-over-month loss of 96 points, driven by weak market fundamentals and cautious trading sentiment.
• U.S. export sales in May 2025 demonstrated steady and positive momentum. Both export commitments and shipments recorded consistent week-over-week growth, signaling sustained global demand. The gradual increase in commitments pointed to a robust pipeline of future deliveries, while the steady rise in shipments indicated efficient trade execution. The month was characterized by stable performance and a healthy export outlook, contributing positively to market sentiment.
• The Indian physical cotton market remained largely subdued throughout May 2025, showing minimal movement despite reduced arrivals across the country. Speculation surrounding a potential withdrawal of import duties, combined with a prevailing cash crunch, curtailed any upward price momentum—even in the face of tight supply. Demand remained notably weak, further pressuring prices downward. The Cotton Corporation of India (CCI) attempted to stimulate activity by lowering its rates by ₹500 per candy, but buyer and investor interest remained limited. Consequently, the market lacked clear direction, with persistent sluggish demand dampening overall sentiment.
• During the month, CCI was unable to offload large quantities of cotton, leading them to reduce the rate by ₹500 per candy. Despite the price reduction, buyers remained reluctant to purchase due to sluggish demand in the yarn market. Toward the end of the month, CCI began offering a lifting period of up to 90 days to encourage buying.
• The Indian government has announced a new Minimum Support Price (MSP) for the upcoming season, which is nearly 8% higher than that of the current season.
• Indian mills are struggling to attract buyers abroad due to higher raw material prices in India.
• The Indian cotton basis during May 2025 showed significant volatility, beginning the month with a sharp rise to a high of 16.77 on May 1st before dropping to the monthly low of 13.63 by May 4th. This early fluctuation was followed by a gradual and steady recovery, with the basis largely trending upward in the second half of the month. Improved market sentiment and stable demand helped push the basis above the key 15.00 level in the final days, closing the month on a firm note. Overall, the basis movement reflected shifting supply-demand dynamics and global market influences throughout the month.
• The USD-INR exchange rate experienced significant fluctuations during May 2025. The month began at ₹84.49 on May 1st and peaked at ₹86.00 on May 22nd. The first week was relatively stable, with rates ranging from ₹84.25 to ₹84.83. A sharp increase occurred in the second week, reaching ₹85.71 on May 8th, likely reflecting heightened market volatility or external economic pressures. During mid-month, the rate fluctuated between ₹85.27 and ₹85.64 before surging to the monthly high. After May 22nd, the rate declined to ₹85.21 and then experienced minor fluctuations, ultimately ending the month at ₹85.58. Overall, the exchange rate showed a general upward trend, suggesting persistent pressure on the Indian Rupee amid possible global economic or geopolitical developments.
• Hope for better for next month