Cotton futures flat at Rs 19,790 per bale on weak global cues
In the futures market, cotton for November delivery touched an intraday high of Rs 19,810 and an intraday low of Rs 19,710 per bale on the MCX.
November 12, 2020 / 03:16 PM IST
Cotton futures traded flat at Rs 19,790 per bale on November 12 as participants widened their position as seen from open interest. Cotton futures in the domestic market gained 0.2 percent yesterday to settle Rs 19,870 per bale on the MCX.
Cotton prices came under pressure after a bearish WASDE (World Agricultural Supply and Demand Estimates) report showing global ending stocks are up 300,000 bales from the previous month. The agency also lowered world cotton demand by 0.3 million bales.
According to Agmarknet data, Cotton arrival across the country in October reached near 3.07 lakh tons, which is more than four-fold higher than last month but are down 33 percent against the same period in the last year.
In the futures market, cotton for November delivery touched an intraday high of Rs 19,810 and an intraday low of Rs 19,710 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 slipped Rs 80, or 0.40 percent, to Rs 19,790 per bale at 14:45 hours IST on a business turnover of 1,508 lots. The same for December contract declined Rs 60, or 0.30 percent at Rs 20,000 per bale with a business volume of 271 lots.
The value of November and December’s contracts traded so far is Rs 6.07 crore and Rs 0.89 crore respectively.
Mohit Vyas, Analyst at Kotak Securities said that we may see some correction to take place in Cotton for the short term, we expected aggressive procurement by Cotton Corporation of India from lower levels in coming sessions.
At 09:20 (GMT), US Cotton futures were marginally down 0.10 percent quoting at 69.21 cents/pound on Intercontinental Exchange (ICE).For all commodities-related news, click here