India – Gujarat 29mm cotton traded firm from last week, reported around INR 44’000 per candy equivalent to US Cents 84 per lb FOB Mundra based on prevailing exchange rate. The USD-INR pair continues to trade firm and tested the 7-month low at 68.34, mainly due to overseas fund inflows into Indian equities and positive trade deficit data. In short term, we can expect recovery to 69.50 to 70.00 area, but the overall trend remains for a stronger Indian rupee.
The cotton market settled in opposite directions Wednesday, with the old crop and new crop higher. For most of the session, the volume was slow, but by the end of the session, trading had greatly increased. There is continued hope a trade deal with China will get done, but the reality is talks are dragging on too long.