Market Movement from 28th Apr 2025 to 03rd May 2025.

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• This week, Texas experienced much-needed rainfall. Meanwhile, ongoing tariff tensions kept the market in the red for four consecutive days. However, signs of positive dialogue between China and the U.S., along with news of a potential trade deal with India, lifted market sentiment. As a result, the market rebounded on the final day of the week, significantly cutting earlier losses. The Ny July closed with a modest week-over-week loss of just 39 points.
• Both export sales and shipments are exceeding the required pace, indicating strong demand for U. S. cotton at current prices, although China remains absent from the market.
• In the latest U. S. Export Sales Report for the week ending 24-Apr-2025, U.S. cotton export sales showed a solid performance with total net sales reaching 1,54,700 bales across both marketing years. In the 2024-2025 season, net upland cotton sales totaled 1,08,400 bales, while shipments reached a robust 3,66,000 bales. Net Pima sales added another 13,200 bales, with 3,900 bales shipped. For the 2025-2026 marketing year, forward sales amounted to 32,900 bales of upland cotton and 200 bales of Pima, bringing the total new crop sales to 33,100 bales. These figures reflect continued international demand and strong shipment activity for U.S. cotton.
• The Gujcot Spot Rate remained steady at ₹54,700 on both Monday and Tuesday, then saw a slight decline to ₹54,600 on Wednesday and Thursday, followed by a further dip to ₹54,500 on Friday. The rate for Saturday was ₹54,400. Overall, the market exhibited a mild downward trend over the week.
• Despite limited arrivals across India, the market has not responded with an upward movement. There is speculation about a possible withdrawal of import duties, and a cash crunch in the market is also being cited as a key reason preventing prices from rising, despite the reduced supply.
• CCI has also been unable to sell large quantities this week. So far, it has sold 28.39 lakh bales till 30^th April 2025, but most of that quantity is yet to be lifted.
• A strong rupee has made Indian cotton too expensive to attract export orders. Even in the yarn segment, new export orders remain limited.
• After recovering in New York on Friday, some gains were seen in Indian basis as well, but basis shot up due to the decline in New York and a stronger rupee.
• During this week, the Indian basis remained between 13.63 and 16.77.
• This week, the USD-INR exchange rate showed notable fluctuations. On Monday, the rate stood at 85.03 and increased to 85.26 on Tuesday. However, it declined sharply to 84.49 on Wednesday and remained unchanged on Thursday. By Friday, the rate saw a slight uptick to 84.58, reflecting overall volatility during the week overall rupee become stronger during this weak
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