Cotton futures trade lower at Rs 21,460 per bale on February 10 as participants trimmed their positions. Cotton prices had gained one percent yesterday to settle at Rs 21,550/bale on the MCX.
The agri commodity traded in the red after a gap-down open in the afternoon session.
Mohit Vyas, Analyst at Kotak Securities, said: “Against 9 percent rally in ICE Cotton futures from February 1-9, domestic cotton futures have managed to post mere 2 percent gains during the period. MCX cotton futures have been underperforming international benchmark prices following huge carryover stock from last year and limited demand by millers at higher prices.”
Lower revision of world cotton stock and Indian cotton production following pest attacks are likely to support domestic cotton for the near future.
In the futures market, cotton for February delivery touched an intraday high of Rs 21,490 and an intraday low of Rs 21,370 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 20,700 and a high of Rs 21,700.
Cotton futures for February delivery slipped Rs 90, or 0.42 percent, to Rs 21,460 per bale at 14:50 hours IST on a business turnover of 6,181 lots. The same for March contract decreased Rs 90, or 0.41 percent at Rs 21,770 per bale with a business volume of 2,000 lots.
The value of February and March’s contracts traded so far is Rs 22.68 crore and Rs 12.23 crore, respectively.
At 09:51 (GMT), US Cotton futures fell 0.46 percent quoting at 86.54 cents/pound on Intercontinental Exchange.
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