Cotton futures trade firm at Rs 21,480 per bale on February 9 as participants widened their positions as seen from open interest. Cotton prices had slipped 0.1 percent yesterday to settle at Rs 21,360/bale on the MCX.
Cotton extended gain after a gap-up open in the afternoon session to trade near day’s high, tracking positive global cues.
Mohit Vyas, Analyst at Kotak Securities, said: “International cotton futures continued with positive momentum following market expectation of yet another month of lower world cotton stock revision by USDA.”
Indian cotton continued to trade at a huge discount from overseas cotton prices, which may increase the attractiveness of Indian cotton in the global market. MCX February cotton contract trade at a discount of 14 percent from Cotlook A price of 90.90 cents on Friday.
In the futures market, cotton for February delivery touched an intraday high of Rs 21,500 and an intraday low of Rs 21,410 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 gained Rs 120, or 0.56 percent, to Rs 21,480 per bale at 16:00 hours IST on a business turnover of 6,435 lots. The same for March contract increased Rs 120, or 0.55 percent at Rs 21,760 per bale with a business volume of 1,434 lots.
The value of February and March’s contracts traded so far is Rs 53.11 crore and Rs 24.20 crore, respectively.
We expect cotton to continue with positive momentum for today. But any surprise in WASDE report may again drag cotton below 80 cents in no time, said Kotak Securities.
At 10:33 (GMT), US Cotton futures rose 0.94 percent quoting at 85.19 cents/pound on Intercontinental Exchange (ICE).
For all commodities-related news, click hereDisclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.