Market Movement from 26th May 2025 to 31st May 2025.

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• There was news of a trade deal falling through between China and the U.S., which added pressure to the market. The NY July future closed the week with a loss of 105 points.
• The export shipments were decent, so the USDA may have to raise its target in the June WASDE report.
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• In the latest U. S. Export Sales Report for the week ending 22-May-2025, U.S. cotton export sales showed a mixed performance. In the 2024-2025 marketing year, net upland sales totaled 1,18,600 bales, while shipments were notably higher at 2,75,400 bales. Net Pima sales registered a reduction of 1,800 bales, though 6,700 bales were shipped during the same period. Combined, total net sales for the current marketing year stood at 1,16,800 bales. For the 2025-2026 marketing year, forward sales included 13,800 bales of upland cotton and 5,500 bales of Pima, bringing the total to 19,300 bales.
• The Gujcot Spot Rate showed minimal fluctuation, starting at ₹53,900 on Monday and inching up slightly to ₹54,000 on both Tuesday and Wednesday. On Thursday, the rate peaked for the week at ₹54,050 before dipping marginally to ₹53,950 on Friday. Saturday’s rate was ₹54,000. Overall, the market remained steady with minor day-to-day variations, indicating a relatively stable cotton pricing environment for the week.
• The Indian physical market continued to experience low demand, with prices remaining nearly unchanged despite a slow pace of arrivals.
• The government has announced an increase of nearly 8% in the Minimum Support Price (MSP) for cotton for the next season.
• The current daily cotton arrival across India is approximately 25,000 bales.
• During this week, the Indian basis remained between 14.70 and 15.78.
• This week, the USD-INR exchange rate showed a consistent upward trend. Starting at 85.08 on Monday, the rate rose to 85.33 on Tuesday and continued its gradual increase to 85.36 on Wednesday. The upward movement persisted through the week, reaching 85.51 on Thursday and closing at 85.58 on Friday. This steady appreciation of the USD against the INR indicates a weakening of the Indian Rupee over the course of the week.
• Hope for best