Market Movement from 28th Jul 2025 to 02nd Aug 2025.
President Trump announced tariffs on several countries, including India. This move disturbed the market and was a key reason for the negative reaction. As a result, NY December closed with a week-over-week loss of 187 points.
Export sales were poor, but shipments were better and are likely to surpass the target set by the USDA.
In the latest U. S. Export Sales Report for the week ending 24-Jul-2025, U.S. export sales data showed net upland cotton sales of 39,100 bales and shipments of 2,30,900 bales for the 2024-2025 marketing year, while Pima sales stood at just 100 bales with shipments of 8,700 bales, bringing total sales for the current year to 39,200 bales. Meanwhile, for the 2025-2026 marketing year, forward net sales were higher, with 71,700 bales of upland cotton and 5,000 bales of Pima, totaling 76,700 bales.
The Gujcot Spot Rate showed a gradual downward trend. It opened at ₹57,300 on Monday, dipped slightly to ₹57,250 on Tuesday, continued declining to ₹57,150 on Wednesday, and further eased to ₹57,000 on Thursday and Friday. The rate for Saturday was ₹57,050. The overall sentiment remained weak with a weekly loss.
The Indian physical market is also following the bearish trend seen in the international market. However, due to limited supply, the decline has been relatively limited. Despite this, overall sentiment in the Indian physical market remains bearish.
Imported cotton is being offered at more competitive prices, and mills with purchase against advance licenses are regularly booking their requirements for the upcoming year as well.
Indian mills are currently spinning high-cost cotton, and with the added challenge of tariffs, the U.S. market has also become difficult for them. As a result, mills are likely to face significant struggles to survive in the coming month.
The monsoon is progressing well, resulting in a healthy crop.
All-India sowing has reached nearly 103 lakh hectares, with Gujarat contributing 20.168 lakh hectares.
During this week, the Indian basis remained between 15.76 and 16.77.
This week, the USD-INR exchange rate showed a steady upward trend. The rate opened at 86.67 on Monday, moved up to 86.81 on Tuesday, jumped significantly to 87.42 on Wednesday, continued its rise to 87.59 on Thursday, and closed slightly lower at 87.54 on Friday.
Hope for best
Latest News
PCCA Cotton Market Weekly 01-Aug-2025
Cotton prices moved lower this week, as soft demand, tariff uncertainty, and broader market pressure
