Cotton futures traded slightly weaker at Rs 21,480 per bale on February 12 as participants reduced their positions as seen from open interest. Cotton prices had gained 0.2 percent on February 11 to settle at Rs 21,450/bale on the MCX.
The agri commodity traded in the green after a gap-up open in the afternoon session.
Mohit Vyas, Analyst at Kotak Securities said, “Steep recovery is ICE Cotton futures post robust weekly export sales numbers is likely to keep domestic cotton range-bound with positive bias for today.”
MCX February Cotton traded at a discount of 15 percent against Cotlook A price of 93.20 cents as on February 11.
The Cotton Association of India (CAI) has raised its production estimate to 36 million bales from 35.9 million bales projected in the previous month, for the ongoing 2020-21 (October-September) season.
In the futures market, cotton for February delivery touched an intraday high of Rs 21,550 and an intraday low of Rs 21,460 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 edged up Rs 30, or 0.14 percent, to Rs 21,480 per bale at 15:03 hours IST on a business turnover of 5,637 lots. The same for March contract gained Rs 30, or 0.14 percent at Rs 21,780 per bale with a business volume of 3,135 lots.
The value of February and March’s contracts traded so far is Rs 38.46 crore and Rs 31.52 crore, respectively.
Geojit Financial Services sees a positive move towards Rs 21,600-21,650 levels as it holds the support of Rs 21,300 levels.
At 09:35 (GMT), US Cotton futures traded marginally up - 0.20 percent to quote at 86.58 cents/pound on Intercontinental Exchange (ICE).
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