Market Movement from 21st Apr 2025 to 26th Apr 2025.
With May contracts nearing expiry, July has now become the lead month. During the week, NY futures showed some momentum. The decline in open interest suggests that traders are squaring up their positions. The July contract closed the week with a gain of 1.67 points week-on-week. Similarly, the December contract also followed suit, ending the week with a gain of 1.53 points week-on-week.
In the latest U. S. Export Sales Report for the week ending 17-Apr-2025, the U.S. cotton export sales showed mixed performance across marketing years. For the 2024-2025 season, net upland cotton sales reached 1,04,000 bales, with shipments totaling a robust 2,92,200 bales. Net Pima cotton sales were recorded at 5,800 bales, and shipments stood at 14,400 bales, bringing the combined total sales to 1,09,800 bales. For the upcoming 2025-2026 marketing year, net upland cotton sales were reported at 38,000 bales, while no Pima cotton sales were noted, resulting in a total of 38,000 bales sold for the future season.
The Gujcot Spot Rate demonstrated a steady rise starting at ₹54,200 on Monday, increasing to ₹54,250 on Tuesday, ₹54,300 on Wednesday, ₹54,450 on Thursday, and ₹54,600 on Friday. The rate for Saturday is yet to be finalized; as of now, it remains ₹54,650. The trend throughout the week reflects a progressive increase in cotton prices, hinting at strong market demand or other influencing factors.
In India, CCI is the primary source for procuring raw material, which allows it to sell a good quantity every week. During this week, CCI has increased its price list by approximately ₹200 per candy.
Mills are currently facing challenges in finding buyers abroad, but domestic demand remains strong. As a result, mill operations are continuing steadily. However, a shortage of labor has led to a slight reduction in production this month.
"Arrivals across India are now limited, leading to rates remaining steady to firm. The current rate for Shankar-6 is around ₹54,500. The Indian physical market is gradually showing signs of firmness."
The Indian basis has now narrowed due to the increase in NY futures.
During this week, the Indian basis remained between 12.33 and 15.44.
This week, the USD-INR exchange rate exhibited minor fluctuations, starting at 85.13 on Monday and gradually increasing to 85.19 on Tuesday. By midweek, the rate climbed further to 85.42 on Wednesday before dipping slightly to 85.26 on Thursday. However, it reached its highest point of the week at 85.45 on Friday, reflecting a modest upward trend over the course of the week.
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