Market Movement from 08th Jul 2024 to 13th Jul 2024.

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• This week, lower US exports and shipments, along with a bearish to neutral WASDE report, put pressure on cotton prices. However, at the low seventy level, the rate did not seem attractive for short selling. As a result, the market ignored all bearish fundamentals and closed nearly unchanged, with a gain of 29 points week-over-week.
• The WASDE report was bearish for the US but neutral for the global market.
• In the latest U. S. Export Sales Report for the week ending 04-Jul-2024, U.S. export sales of cotton demonstrated robust activity. For the 2023-2024 marketing year, net upland sales reached 54,100 bales with upland shipments totaling 1,60,700 bales. Net Pima sales for the same period were 3,900 bales, with shipments of 1,900 bales, culminating in total sales of 58,000 bales. Looking ahead to the 2024-2025 marketing year, net upland sales were recorded at 69,500 bales, while there were no net Pima sales reported, resulting in a combined total of 69,500 bales for the future period.
• Due to a slower pace of shipments, the USDA has reduced its export target by 200,000 bales, from 11.8 million bales to 11.6 million bales.
• This week, the Gujcot Spot Rate remained steady at 57,750 Rs per candy on both Monday and Tuesday. On Wednesday, it saw a slight decrease to 57,650. However, the rate increased on Thursday to 57,900 and remained stable at this rate through Friday. The rate for Saturday is 57,900 Rs per candy. The fluctuation in rates this week indicates a minor volatility in the market, with an overall upward trend towards the end of the week.
• Indian cotton prices are currently high, the Indian basis ranging from 17.11 to 17.69, making it challenging for Indian stakeholders to compete with their rivals. The rising costs of Indian cotton create a difficult environment for local producers and businesses.
• Daily cotton arrivals in India are currently around 20,000 bales. Despite a firm sentiment among ginners aimed at preventing a market decline, demand remains very weak. Although the Cotton Corporation of India (CCI) has allowed traders to participate in auction sales, their involvement has been minimal.
• The monsoon is progressing across the entire cotton-growing region, but some areas still require substantial rainfall.
• Cotton sowing is currently in progress across India, with the total area sown surpassing 80 lakh hectares. Gujarat alone has contributed 18.6 lakh hectares to this total.
• This week, the USD-INR Exchange Rate started at 83.49 on Monday and saw a slight decrease to 83.48 on Tuesday. It then increased marginally to 83.52 on Wednesday and continued to rise to 83.56 on Thursday. However, the rate dipped slightly to 83.53 by the end of Friday. The week showed moderate fluctuations, with a generally stable trend, reflecting cautious market movements amidst global economic developments.
• Hoping for a better monsoon