Cotton futures traded weak at Rs 19,700 per bale on November 13 as participants increased their short positions as seen from open interest. Cotton futures in the domestic market fell 0.5 percent on November 12 to settle at Rs 19,770 per bale on the MCX.
The ongoing procurement by the Cotton Corporation of India, reports of crop damage in Maharashtra, and better Indian cotton outlook have limited losses in natural fibre in the home country.
The Cotton Association of India expects Indian Cotton exports to surge by 40 percent in 2020-21 season to 70 lakh bales amid weak rupee and rally in global cotton prices.
MCX November Cotton futures traded at a discount of around 9 percent from Cotlook A prices of 77.60 cents on Wednesday.
In the futures market, cotton for November delivery touched an intraday high of Rs 19,720 and an intraday low of Rs 19,620 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 16,440 and a high of Rs 20,150.
Cotton futures for October delivery declined Rs 70, or 0.35 percent, to Rs 19,700 per bale at 14:51 hours IST on a business turnover of 1,503 lots. The same for December contract slipped Rs 40, or 0.20 percent, at Rs 19,940 per bale with a business volume of 272 lots.
The value of November and December’s contracts traded so far is Rs 4.13 crore and Rs 0.39 crore, respectively.
"We may see some correction to take place in Cotton today ahead of a long weekend, we expected aggressive CCI procurement and crop damage apprehension may support Cotton from lower levels in coming sessions," Mohit Vyas, Analyst at Kotak Securities, said.
At 09:25 (GMT), US Cotton futures were marginally up 0.07 percent quoting at 68.53 cents/pound on Intercontinental Exchange (ICE).For all commodities related news, click here