NY December futures expired after witnessing a sharp decline from 65.68 to 61.35, ultimately closing the month with a month-on-month loss of 263 points. Following a similar pattern, the front-month NY March contract also declined from 66.88 to 63.78 and finally settled with a month-on-month loss of 202 points.

Following the reopening of the U.S. federal government, the USDA has resumed the release of its reports. As per the export sales report dated October 23, total U.S. export sales commitments stand at 50,17,804 bales, while actual exports are reported at 17,53,771 bales to date.

The Indian physical cotton market is under significant pressure due to the declining international market, heavy arrivals of duty-free imported cotton, regular selling by the Cotton Corporation of India (CCI), and the current influx of lower-quality arrivals.

The Gujcot spot rate began the month at around ₹53,000 per candy and declined to nearly ₹51,650 during the month. However, towards month-end, support from C.C.I.’s MSP procurement helped the rate recover to ₹52,000 per candy.

Due to the depreciation of the rupee from 88.50 to 89.50 per US dollar and a sharp decline in NY futures, the Indian basis softened during the month. It declined from around 1,250 points over NY to nearly 950 points under NY by month end.

Imported cotton is currently not economically viable compared to domestic cotton, as Indian cotton prices are now at par with the Cotlook Index.

C.C.I. procurement has now accelerated, with nearly 14 lakh bales procured by the end of the month.

In the coming month, we may witness a significant increase in arrivals along with higher procurement by the C.C.I.

Mills have sufficient inventory and also hold healthy sales on their order books. However, due to weak year-to-date profit margins, they are operating cautiously.