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.

• Daily Physical Spot Rate

• MCX Cotton Daily Closing Rate

• USD-INR Exchange Rate Closing

• Cotlook Index

• ICE Future Closing

• NCDEX Kapas Rate

• MCX Future Closing

• NCDEX and MCX converted into Rs. Candy Rate

We hope it will be useful to all the stake holders of Textile Value Chain.

• In the month of October, both NY December and March futures commenced trading near 88 cents, experiencing a gradual decline. The market remained relatively stable during December, with NY March operating within a narrow range of 79 to 82 cents. The downward trend during this period was primarily attributed to factors such as the Gaza war and the Federal Reserve's decisions to decrease interest rates.
• All macroeconomic factors pointed towards a decrease in demand, but towards the end of the quarter, some signs of improvement were observed.
• Despite unfavorable macroeconomic conditions, U.S. Export Sales performed well. By the end of the quarter, U.S. Export Sales had reached approximately 8.7 million bales, with 31.5 million bales already shipped. However, sales for the upcoming year are trailing behind compared to the previous year.
• The Indian physical market, influenced by macroeconomic factors and subdued demand, experienced a decline in the October season, starting at 60,850 and gradually reaching a new low of 54,500 by December.
• By the end of December, the rate remained consolidated, hovering near 55,000 Rs. per candy.
• Mill buying commenced at a sluggish pace initially, but as the rates approached the Minimum Support Price (M.S.P.), both ginners and mills have started to gradually build up their inventories.
• At the Minimum Support Price (M.S.P.), the Cotton Corporation of India (C.C.I.) procured approximately 14 lakh bales. Merchants also procured a considerable quantity at lower rates, effectively absorbing the higher arrival in December.
• All-India arrivals have surpassed the one crore bales mark, exceeding initial expectations.
• The anticipated arrival of cotton in Gujarat is expected to reach approximately 29 to 30 lakh bales by the end of the quarter.
• The Indian basis ranged from 400 to 700 on NY for most of the time; however, it experienced a significant jump in November, reaching 1,150. Despite this increase, it remained attractive during December, fluctuating between 200 to 500 on NY March.
• Limited exports of Indian yarn and raw cotton were observed initially due to disparities, but in December, there was an improvement in yarn orders, and mill buying saw positive momentum.
• Overall, bears have gained profits during this quarter, and currently, rates are holding steady to firm, particularly around 55,000 Rs per candy in cotton and mostly maintaining some parity in cotton yarn.
• In the next quarter, we anticipate a substantial arrival, especially in January and February.