Market Movement from 02nd Jun 2025 to 07th Jun 2025.
The NY Futures traded in a narrow range throughout the week but closed in the green, supported by robust export sales, registering a week-over-week gain of 56 points.
US Export shipments were decent, and now only 1,15,000 bales per week are needed to meet the export target set by the USDA. Therefore, in the upcoming WASDE report, it is likely that the USDA may increase the export estimate for the current season.
In the latest U. S. Export Sales Report for the week ending 29-May-2025, U.S. export sales of cotton reported a total of 1,16,500 bales for the 2024-2025 marketing year, comprising 1,09,800 bales of upland cotton and 6,700 bales of Pima. Shipments remained strong, with upland exports at 3,16,100 bales and Pima at 11,100 bales. Additionally, forward sales for the 2025-2026 season totaled 40,000 bales, including 39,000 bales of upland and 1,000 bales of Pima, indicating continued demand for U.S. cotton in the upcoming marketing year.
The Gujcot Spot Rate remained steady at ₹54,100 on both Monday and Tuesday before experiencing a gradual decline through the rest of the week. The rate slipped slightly to ₹54,000 on Wednesday, dropped further to ₹53,900 on Thursday, and closed the week at ₹53,950 on Friday. Saturday’s rate was ₹53,900.
The Indian physical cotton market remains lackluster, showing little to no volatility, with prices hovering around ₹54,000 (basic). The Cotton Corporation of India (C.C.I.) is also struggling to offload large quantities as mills remain reluctant to make purchases.
Indian mills are currently facing a cash crunch as export buyers have delayed shipments and domestic buyers are demanding extended credit terms. In this situation, mill purchases remain limited.
The Indian basis also remained in a tight range between 14.61 and 15.19.
This week, the USD-INR exchange rate exhibited moderate fluctuations throughout the week. It opened at 85.38 on Monday and steadily rose to a peak of 85.90 on Wednesday, indicating a weakening of the Indian Rupee mid-week. However, the rate slightly declined thereafter, settling at 85.79 on Thursday and 85.63 on Friday. Overall, the week closed with a net gain for the US Dollar against the Indian Rupee.
Hope for best
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PCCA Cotton Market Weekly 06-Jun-2025
Markets were active this week, with cotton holding steady in a narrow range as traders watched mixed
