Cotton futures traded marginally weaker at Rs 21,780 per bale on April 26 as participants increased their short positions as seen from open interest. Natural fibre had gained Rs 410, or 1.91 percent last week on the MCX.
The agri commodity pared gains after a gap-up start on a negative global trend.
The soft commodity has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 54.69 which indicates upbeat movement in prices.
Textile supply chains have recovered following the most acute phase of the COVID-related disruption; many spinners have enjoyed good profits and some have been adding new capacity.