Market Movement from 01st Jun 2026 to 06th Jun 2026.

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• Another week ended with a bearish tone in the New York cotton futures market, as prices continued their downward trend and settled in the red. The decline was driven by a combination of rollover activity, long liquidation, and a technical reversal after futures closed below key support levels. July futures ended the week with a loss of 240 points, while the lead December contract closed 211 points lower. The spread between July and December widened further, with December trading at a premium of 373 points over July, reflecting a full carrying charge structure. This wider spread provided an attractive opportunity for short positions to roll forward into the December contract with ease.
• The latest U.S. Export Sales report for the week ending May 28, 2026, were supportive, with net upland sales of 1,85,268 bales and upland shipments reaching a strong 2,68,799 bales for the 2025-26 marketing year. Net Pima sales were reported at 5,438 bales, while Pima shipments totaled 18,726 bales, bringing total sales for the current season to 1,90,706 bales. For the 2026-27 marketing year, exporters booked 77,145 bales of net upland sales and an impressive 36,818 bales of net Pima sales, resulting in total new-crop sales of 1,13,963 bales. Strong shipment activity continues to indicate healthy export demand and steady execution of previously contracted sales.
• The Indian cotton market remained under pressure this week, with the Gujcot spot rate declining from ₹63,100 per candy on Monday to ₹62,500 on Tuesday and further to ₹62,350 on Wednesday. The market witnessed a slight recovery on Thursday as rates improved to ₹62,500, but selling pressure re-emerged on Friday, bringing the rate down to ₹62,100 per candy. On Saturday, the Gujcot spot rate stood at ₹61,900 per candy. Overall, the market sentiment remained weak amid lower demand from mills, bearish international cotton futures, and comfortable availability of cotton in the domestic market.
• The Indian physical cotton market remained slightly weaker during the week. At current lower price levels, stockists are reluctant to sell and are preferring to wait for clearer indications from actual sowing progress and monsoon developments. Meanwhile, CCI has revised its lifting terms, allowing participants up to 60 days without carrying charges. However, despite this relaxation, weak market sentiment has limited buying interest, and CCI continues to struggle in attracting buyers.
• Indian mills now have better purchasing opportunities. The decline in NY futures, coupled with the appreciation of the Indian rupee, has made imported cotton more attractive and economical to book. At the same time, prevailing bearish market sentiment is giving mills an opportunity to cover their domestic cotton requirements on favorable terms and conditions.
• Gujarat sowing started and up to 1^st June it was near 15,000 Hectares.
• During this week, the Indian basis remained between 6.36 to 9.67 with July and 2.58 to 5.94 with lead month December.
• The USD-INR exchange rate witnessed a volatile week, opening at 94.99 on Monday and strengthening steadily to 95.27 on Tuesday, 95.71 on Wednesday, and a weekly high of 95.79 on Thursday. However, the rupee recovered sharply on Friday, with the exchange rate falling to 94.95. Overall, the USD-INR pair ended the week marginally lower by 0.04 points compared to Monday's level, reflecting mixed market sentiment and continued fluctuations driven by global currency movements and domestic factors.
• Let’s hope for the best.