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Cotton demand from US textile mills drops to lowest since 1885American mills are on track to process the least cotton this year since 1885. According to an updated US Department of Agriculture forecast released Monday, US textile mills will feed just 1.74 million bales of cotton into their machines in the 2023-2024 marketing year that ends in July, the slowest rate in 139 years. That’s nearly 15 per cent less than last year and even lower than the agency’s prior forecast.These factories, which turn cotton fibres into yarn and fabric, are among the last bastions of the country’s textile industry after decades of rising competition from cheaper overseas production and synthetic materials. Mill use made a brief recovery in the 1990s, when trade deals encouraged the US to export yarn and fabric to be turned into clothes in other countries before being sent back and sold.US mill use has “just disappeared,” said Peter Egli, the director of risk management at Plexus Cotton Ltd. Factories in other countries “just operated at much better margins than producing in the US.”

Today, the rupee opened at Rs 83.10 with a weakness of 10 paise against the dollarThe rupee opened today with weakness against the dollar. At the same time, on Tuesday, the rupee closed at the level of 83.00 rupees against the dollarSensex (BSE Sensex) and Nifty 50 ((Nifty 50) are down sharply. Sensex is currently at 70989.57 and Nifty at 21579.10.

The rupee settled flat at 83 against the US dollar on TuesdayAs the support from a rally in domestic equities was negated by a strong greenback overseas and rising crude oil prices.Sensex closed 482 higherSensex closed at 71,555.19, up 482.70 points or 0.68 per cent and Nifty closed at 21,743.30, up 127.30 points or 0.59 per cent. About 1284 shares advanced, 1994 shares declined and 62 shares remained unchanged.

Today the rupee opened 2 paise stronger at Rs 82.98 against the dollar.Today BSE Sensex opened at 71153.43 points with a gain of about 80.94 points. Whereas NSE's Nifty opened with a gain of 11.70 points at the level of 21627.70 points. A total of 2,784 companies started trading on BSE today.

This evening, the rupee strengthened by 4 paise and closed at Rs 83.00 against the dollar.Today Sensex fell by about 523.00 points and closed at the level of 71072.49 points. Whereas Nifty closed at the level of 21616.00 points with a fall of 166.50 points.

Cotton Gains As 2023/24 Cotton Ending Stocks Are Lower This MonthCotton prices showed resilience in yesterday's trading session, settling up by 0.62% at 58680. The positive momentum can be attributed to the latest U.S. cotton balance sheet for the 2023/24 season, which reported lower ending stocks, higher exports, and stable production. The export forecast was raised to 12.3 million bales, reflecting a robust pace of shipments and sales, contributing to reduced ending stocks estimated at 2.8 million bales, representing 20% of total disappearance. Internationally, the cotton market witnessed adjustments in ending stocks and production estimates. World ending stocks decreased by nearly 700,000 bales due to lower beginning stocks and production, while consumption remained steady, albeit with variations across countries.Notably, China's imports saw a significant increase, offsetting reductions in other major importing nations like India, Pakistan, Thailand, and Turkey. The USDA's weekly sales report indicated a surge in net sales and exports for the 2023/2024 season, driven by strong demand from China and Vietnam, with exports consistently exceeding 200,000 bales in recent reports. Additionally, the Cotton Association of India (CAI) maintained estimates for domestic consumption and production for the 2023-24 season, reflecting stability in the Indian cotton market. Reports of declining infestation of pink bollworm in cotton crops across the country also provided a positive outlook for production. In the spot market, prices in Rajkot ended slightly lower at 26826.35 Rupees, reflecting minor fluctuations in local trading.From a technical perspective, the market is experiencing fresh buying, with an increase in open interest by 6.12% and prices up by 360 rupees. Support levels for Cotton candy are identified at 57980 and 57290, with resistance expected at 59080 and potential further upside testing 59490.

Rupee opened stronger against dollar today.The rupee opened strongly against the dollar today. Today the rupee opened 3 paise stronger at Rs 83.01 against the dollar. At the same time, on Friday, the rupee closed at Rs 83.04 against the dollar with a weakness of 8 paise.

This evening, the rupee closed at Rs 83.04 against the dollar with a weakness of 8 paise.Today, Sensex closed at 71595.4 with a rise of about 167.06 points or 0.23%. And Nifty closed at 21782.50 with a fall of 64.55 points or 0.30%.

*Cotton Market Dynamics: Surging Exports, Shifting Trade, and Price Resilience in 2023/24*In the 2023/24 U.S. cotton balance sheet, higher exports and reduced mill use lead to lower ending stocks despite unchanged production. Globally, decreased beginning stocks and production levels result in a significant drop in ending stocks, while consumption remains steady. China's increased imports contrast with reductions in other key exporting nations, shaping the trade landscape. The market's resilience is underscored by price upticks and shifting dynamics amidst varied regional production and consumption trends.HighlightsIn the 2023/24 U.S. cotton balance sheet, there have been some notable changes compared to the previous month. Despite unchanged production, ending stocks are lower due to higher exports and reduced mill use. Export forecast has been raised by 200,000 bales to 12.3 million, driven by strong shipments and sales so far. Conversely, projected mill use is down by 150,000 bales as domestic spinning activity in the U.S. remains subdued.As a result of these adjustments, ending stocks are now estimated at 2.8 million bales, representing 20 percent of total disappearance. The upland cotton marketing year average price received by producers is projected at 77 cents per pound, which is 1 cent higher than the previous estimate in January.On a global scale, 2023/24 cotton ending stocks are nearly 700,000 bales lower this month. This is primarily due to reduced beginning stocks and production, which have led to a decrease in supplies. World consumption remains virtually unchanged, with increases in China and Vietnam offset by decreases in Turkey, the United States, and Thailand.Beginning stocks have decreased by 250,000 bales compared to January, mainly due to a downward revision in Argentina’s 2022/23 cotton crop. Additionally, projected 2023/24 world cotton production is 355,000 bales lower this month. This reduction is attributed to decreases in Australia and Benin, partly offset by smaller increases elsewhere.World trade is nearly 200,000 bales lower, primarily because a 500,000-bale increase in China’s imports is outweighed by reductions in India, Pakistan, Thailand, and Turkey. Notably, exports are higher for the United States, Burkina Faso, and Turkey, while lower for Brazil, Argentina, and Australia.ConclusionThe 2023/24 cotton market showcases dynamic shifts driven by factors like export surges, altered trade patterns, and price resilience amidst global supply and demand adjustments. While the U.S. witnesses lower ending stocks due to heightened exports and subdued domestic spinning, the global scenario reflects a complex interplay of production revisions, consumption patterns, and trade dynamics. China's robust import demand contrasts with decreases in other major exporters, underlining the market's nuanced response to diverse regional influences. Despite uncertainties, price stability hints at market adaptability amidst evolving conditions, signaling opportunities and challenges for stakeholders navigating the cotton landscape

The rupee opened strongly against the dollar today.The rupee opened strongly against the dollar today. Today the rupee opened with a strengthening of 1 paise at Rs 82.95 against the dollar. At the same time, on Thursday, the rupee strengthened by 1 paise and closed at Rs 82.96 against the dollar.Today the stock market started with a decline.Today the stock market started with a decline. While Paytm's shares again crashed in the initial phase, LIC's shares again reached all-time high today. Whereas BSE Sensex opened with a fall of 164.57 points at the level of 71263.86 points. Whereas NSE's Nifty opened with a gain of 41.70 points at the level of 21676.30 points. A total of 2,489 companies started trading in BSE today.

Allow 90 days for payment of goods supplied by MSMEs to textile sector: TASMAThe Tamilnadu Spinning Mills Association (TASMA) has expressed concerns regarding a new clause introduced in the Income Tax Act, 1961, through the Finance Act 2023. The Finance Ministry has introduced Section 43B(H), which mandates payment for goods supplied by Micro and Small Enterprises (MSMEs) within 45 days. This aligns with the provisions under Section 15 of the MSMED Act, 2006, aimed at ensuring prompt payments to prevent MSMEs from facing delays in fund flow.TASMA has written to the Finance and MSME ministries, highlighting the industry's apprehension about the new clause. According to TASMA, the introduction of Section 43B(H) has caused panic among suppliers and buyers in the textile value chain. Many buyers, who were accustomed to flexible payment periods as agreed upon between parties, are now hesitant to accept goods with the limited payment terms of 45 days.In certain segments of the textile industry, a payment period of 90 days has been widely accepted by both suppliers and buyers. Transactions have been proceeding smoothly under these terms. TASMA and industry participants argue that a 90-day period is necessary, considering the nature of the goods involved, which undergo further value-addition through additional processes.TASMA has urged the MSME Ministry to amend the clause, allowing a 90-day period for the settlement of payments with micro, small, and medium enterprises. The association suggests that if a general amendment to the Act is not possible, a restrictive consideration for the textile industry alone should be entertained, taking into account the established business practices in the sector.