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.
We hope it will be useful to all the stake holders of Textile Value Chain.
ICE Cotton Futures (July contract) opened the month near 73 cents and sustained strong upward momentum throughout the period. The key driving factor was the rise in crude oil prices amid escalating tensions between the United States and Iran, which boosted overall commodity sentiment. Supported by positive technical indicators and speculative buying, the NY July contract closed above the 82-cent mark. During the month, NY July recorded a robust gain of 1,007 points month-on-month, while the NY December contract also followed the trend, posting a gain of 853 points.
The new crop December contract largely moved in tandem with the July contract; however, by the end of the month, the spread between July and December narrowed to just 67 points. As a result, the carry between the old crop and new crop has nearly been eliminated.
U. S. Export sales remained decent overall. Although recent weekly sales showed some decline, shipments continued at a steady pace, staying well aligned with targets.
The Indian physical market gained momentum, tracking the rally in NY futures. A narrowing basis, improved yarn demand, and support from a depreciating rupee boosted cotton and textile export competitiveness. Shankar-6 cotton prices in Gujarat (Gujcot) started the month at ₹58,750 and steadily increased to around ₹61,500 in the spot market.
Cotton Corporation of India gradually increased its base selling prices. Despite continuous hikes, CCI managed to sell 18,65,800 bales a decent quantity, and currently over 55% of its procured stock has been liquidated, limiting any immediate selling pressure.
Arrivals in India declined progressively, with major inflows now concentrated in central regions. The new crop from Andhra Pradesh has begun arriving, though volumes remain limited.
Tighter arrivals have kept prices firm. Indian mills are benefiting from strong yarn demand and healthy margins, leading them to secure additional cotton. Export demand for cotton yarn remains robust, further supported by the weakening rupee.
The Indian basis narrowed sharply to around 59 points by month-end, compared to approximately 1,100 points at the beginning of the month. Rising NY futures and rupee depreciation have kept Indian cotton competitively priced in the global market.
The Indian rupee remained in the range of 92.58 to 94.91 a dollar during the month.