Cotton futures climbed to Rs 19,770 per bale on October 28 despite participants reducing their positions, as seen from the open interest. Cotton futures in the domestic market gained 0.83 percent the previous day on the MCX Index.
After falling by more than 1 percent in the previous two sessions, buying emerged in the 1-month forward contract amid crop loss concerns in Telangana and the attractiveness of Indian cotton in the overseas market, said Mohit Vyas, an analyst at Kotak Securities.
Indian cotton trades at a 7 percent discount from Cotlook A prices of 77.40 cents as on October 26.
In the futures market, cotton for October delivery touched an intraday high of Rs 19,800 and an intraday low of Rs 19,680 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 16,060 and a high of Rs 19,930.
Cotton futures for October delivery soared Rs 360, or 1.85 percent, to Rs 19,770 per bale at 2:50 pm on a business turnover of 27 lots. The same for November contract rose Rs 130, or 0.66 percent at Rs 19,870 per bale with a business volume of 1,063 lots.
The value of October and November’s contracts traded so far is Rs 1.33 crore and Rs 13.61 crore respectively.
Kotak Securities expects cotton to continue with marginal gains in the rest of the session.
At 09:22 am GMT, US cotton futures were trading up 0.46 percent quoting at $72.36 per pound on the Intercontinental Exchange (ICE).