Market Movement from 25th Aug 2025 to 30th Aug 2025.

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• NY December cotton has been trading in a narrow range of 66–69 cents for the past couple of months. This week, it closed with a week-over-week loss of 147 points.
• U.S. cotton export sales for the week ending 21-Aug-2025 showed a solid performance for the 2025-2026 marketing year, with net upland sales of 1,79,300 bales and shipments of 1,12,700 bales. Net Pima sales were reported at 3,900 bales, while Pima shipments stood at 14,000 bales. This brought the total weekly sales to 1,83,200 bales. For the 2026-2027 marketing year, there were no reported upland or Pima sales, keeping total forward sales at zero.
• The Gujcot Spot Rate opened on Monday at 56,000 and showed a gradual downward trend throughout the week, with Tuesday at 55,900, Wednesday at 55,800, Thursday at 55,600, Friday at 55,500, and on Saturday 55,400, reflecting continuous pressure on prices amid lackluster demand and limited trade activity.
• The Indian physical cotton market has witnessed a sharp decline after the government removed import duty until 31st December. At present, duty-free foreign cotton is significantly cheaper than domestic cotton, giving large mills the opportunity to cover their entire requirements at lower rates. However, in India, the MSP will continue to keep domestic prices comparatively high, creating intense pressure on the CCI to procure large quantities, while ginners will struggle to operate under such circumstances.
• Indian mills have a good opportunity for a level playing field, as most of their requirements will be covered through imports, enabling them to compete effectively with rivals.
• The monsoon is progressing well. In the South, some new arrivals have already started, and Haryana is also preparing to begin the new season.
• All-India cotton sowing has reached 108.47 lakh hectares, of which Gujarat contributes 20.72 lakh hectares.
• Indian basis is currently declining along with some weakness in the physical market, but ICE futures are still not providing support.
• During this week, the Indian basis remained between 13.59 and 14.61.
• This week, the USD-INR exchange rate opened at 87.58 on Monday, moved slightly higher to 87.68 on Tuesday and remained unchanged on Wednesday, eased to 87.63 on Thursday, and finally spiked to 88.19 on Friday, marking a sharp weekly gain driven by strong dollar momentum.
• Hope for best