Market Movement from 22nd Jul 2024 to 27th Jul 2024.

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• Improved crop progress report indicates large crop in USA so speculators keep huge short position in NY December. With pressure of this selling force NY December breakout psychological support of 68 cents and close at 67.99 NY December closed loss of 271 points W/W.
• In the latest U. S. Export Sales Report for the week ending 18-Jul-2024, U.S. export sales data revealed negative net upland sales for the 2023-2024 marketing year, totaling -74,200 bales, with upland shipments at 1,31,300 bales. Net Pima sales were also negative at -200 bales, with Pima shipments reaching 2,300 bales, bringing total sales to -74,400 bales for the current marketing year. In contrast, the 2024-2025 marketing year showed positive net upland sales of 2,85,900 bales and net Pima sales of 4,900 bales, resulting in total sales of 2,90,800 bales.
• Export shipments have been poor, and with only one week remaining, it appears unlikely that the target of 11.6 million bales will be met. As a result, ending stocks in the U.S. are expected to increase.
• This week, the Gujcot Spot Rate experienced a downward trend. Starting at 57,650 Rs per candy on Monday, the rate slightly increased to 57,700 on Tuesday. However, it dropped to 57,500 on Wednesday, continued its decline to 57,200 on Thursday, and further decreased to 56,900 on Friday. The rate for Saturday was 56,750. Overall pattern suggests a continuing decrease in prices throughout the week.
• The daily all-India arrival of cotton has now decreased to near or below 20,000 bales.
• Gujarat sowing is 22.342 lakh hectares at this time which was 26.249 lakh hectares in same period last year.
• Arrivals in Gujarat are progressing slowly, and due to heavy rains in Saurashtra, pressing activities have also become sluggish.
• The monsoon progress across all cotton-growing areas has been generally favorable. Some regions have experienced heavy rainfall, while others are still in need of rain. Overall, the progress has been positive.
• The total area sown across India has reached 10.5 million hectares. This is approximately 8,00,000 hectares less than the same period last year.
• The Indian basis is now at an all-time high for the year, nearing 1,900 points.
• Indian mills are attempting to secure imported cotton, as it is more cost-effective than domestic cotton.
• This week, the USD-INR exchange rate showed a slight upward trend. Starting at 83.65 on Monday, it incrementally increased to 83.68 on Tuesday and 83.71 on Wednesday. Although there was a minor dip to 83.69 on Thursday, the rate resumed its rise, reaching 83.72 on Friday. Overall, the exchange rate demonstrated a modest increase over the course of the week.
• Hoping for a better season ahead.