Market Movement from 29th Apr 2024 to 04th May 2024.

•  
• The week began with a glimmer of positivity on Monday, but the overall macroeconomic conditions, coupled with the Federal Reserve's decision to pause rate cuts, remained negative. Additionally, lower exports and shipments further fueled the downward trend in the market. By Thursday, the market had suffered a loss of nearly 500 points. However, there was a recovery on the last day, with a gain of 244 points. As a result, NY July closed the week with a loss of 284 points compared to the previous week, while December closed with a loss of 134 points week over week. Consequently, during this week, the spread between July and December narrowed to just 209 points.
• In the latest U. S. Export Sales Report for the week ending 25-April-2024, U.S. export sales revealed a mixed trend. For the 2023-2024 season, net upland sales stood at 97,500, while upland shipments were recorded at 1,80,000. Net Pima sales amounted to 4,600, with corresponding shipments also at 4,600, resulting in a total sales figure of 1,02,100. However, for the 2024-2025 season, net upland sales declined to 34,400, with no reported net Pima sales, resulting in a total of 34,400 for the week.
• This week saw fluctuations in Gujcot Spot Rates, starting at 58,100 on Monday, dipping slightly to 57,800 by Tuesday, further decreasing to 57,250 by Wednesday. However, the downward trend continued with rates dropping to 56,950 by Thursday and 56,750 by Friday. The rate for Saturday is 56,900. Such fluctuations reflect the dynamic nature of the cotton market, influenced by various factors such as supply, demand, and external economic conditions.
• The Indian physical market continues to experience a downward trend, prompting market players to offload their long positions freely, buoyed by favorable basis conditions. The Indian basis remains close to 1,000 on par with NY July, presenting a lucrative opportunity for basis players to capitalize on. The Indian basis remains fluctuating between 7.26 to 11.41 in relation to NY July.
• Additionally, the Cotton Corporation of India (CCI) has also reduced its sale rates. Consequently, ginners with higher-priced stock are facing challenges in selling their inventory.
• Due to Indian cotton prices being higher than international competitors, yarn selling is also sluggish.
• This week witnessed minimal fluctuations in the USD-INR Exchange Rate, maintaining stability throughout the week. The rate remained steady at 83.47 on Monday and Thursday, with minor variations recorded on Tuesday and Friday, standing at 83.42. Such consistency indicates a relatively balanced market sentiment and suggests a steady state of affairs in the foreign exchange market, possibly influenced by macroeconomic factors and geopolitical developments.
• On May 7th, it's time to vote in Gujarat. We, the team at Gujcot, appeal to all our cotton friends to cast their votes along with their family and friends. Your vote is crucial in serving the nation.