Gujcot Trade Assocation

GUJCOT WEEKLY REPORT 28-JUN-2025

Posted : July 12, 2025

Market Movement from 23rd Jun 2025 to 28th Jun 2025.

In New York futures, July has expired and nearly all open interest and options have shifted to the lead month, December. There is a significant volume of on-call purchases in December 2025. With the end of the Israel-Iran conflict, market sentiment has turned positive. Additionally, the rollover into the next futures contract has provided liquidity, pushing NY December futures close to the psychological 70-cent mark. NY December closed with a week-on-week gain of 262 points, indicating strong buying across the board.

Export sales and shipments were slightly lower this week, but it appears that the new targets set by the USDA are still achievable.
In the latest U. S. Export Sales Report for the week ending 19-Jun-2025, U.S. cotton export sales saw total commitments of 29,200 bales for the 2024-2025 season, comprising net upland sales of 27,400 bales and net Pima sales of 1,800 bales. Shipments remained steady with 1,84,500 upland bales and 8,000 Pima bales exported. For the 2025-2026 marketing year, net upland sales stood at 64,700 bales, while there were no new Pima sales, bringing the total forward sales to 64,700 bales.
The Gujcot Spot Rate showed a steady upward trend. The rate started at ₹53,950 on Monday, increased slightly to ₹54,050 on Tuesday, and rose further to ₹54,100 on Wednesday. The upward movement continued with ₹54,250 on Thursday and ₹54,300 on Friday. Saturday's rate stood at ₹54,500. Overall, the market maintained a firm tone throughout the week.
The Indian physical cotton market remained firm as daily arrivals declined to below 20,000 bales. The majority of the arrivals are from Central India, along with some new crop arrivals from Tamil Nadu.
CCI had a robust week as the sentiment of Indian consumers improved. CCI recorded sales of nearly 15 lakh bales during the week.
Indian mills are now willing to cover their requirements up to the new season, and CCI remains the only reliable source to secure large quantities.
During this week, the Indian basis remained between 11.71 and 12.40 cents per lbs.
This week, the USD-INR exchange rate showed a declining trend. It opened at 86.75 on Monday and slipped to 85.97 on Tuesday. The rate slightly recovered to 86.08 on Wednesday but continued to weaken thereafter, falling to 85.70 on Thursday and closing the week lower at 85.47 on Friday, indicating overall rupee strength against the dollar.
Hope for best