Cotton futures were trading around 0.4 percent lower at Rs 22,200 per bale on March 8 as participants trimmed their positions on weak global cues. Prices had risen 0.4 percent yesterday to settle at Rs 22,240/bale on the MCX.
The agri commodity traded in the negative territory after a flat to gap-up start in the afternoon session.
The soft commodity has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on the daily chart. The Relative Strength Index (RSI) is at 64.07 which indicates positive momentum in prices.
“Cotton futures traded in the narrow range of Rs 100 during yesterday’s session as market awaits USDA’s WASDE report before taking any call on natural fibre”, said Mohit Vyas, Analyst at Kotak Securities.
“Persistent rise in yarn prices following recovery in the textile industry has also kept losses limited in domestic Cotton prices,” he said.
MCX March Cotton trade at a discount of 12 percent from Cotlook A price of 93.65 cents as of Friday.
In the futures market, cotton for March delivery touched an intraday high of Rs 22,260 and an intraday low of Rs 22,150 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 21,170 and a high of Rs 22,540.
Cotton futures for March delivery dropped Rs 40, or 0.18 percent, to Rs 22,200 per bale at 15:46 hours IST on a business turnover of 7,809 lots. The same for April contract slipped Rs 60, or 0.27 percent at Rs 22,540 per bale with a business volume of 3,547 lots.
The value of March and April’s contracts traded so far is Rs 23.20 crore and Rs 16.48 crore respectively.
Weak weekly export sales and correction in crude oil after multiple session of steep rise may keep cotton under check ahead of WASDE report, said Kotak Securities.
At 10:19 (GMT), US Cotton futures declined 0.78 percent quoting at 87.63 cents/pound on Intercontinental Exchange (ICE).
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