Cotton futures slide to Rs 19,630 per bale on weak global cues
In the futures market, cotton for November delivery touched an intraday high of Rs 19,820 and an intraday low of Rs 19,550 per bale on the MCX.
November 06, 2020 / 03:16 PM IST
Cotton futures eased to Rs 19,630 per bale on November 6 as participants increased their short position as seen from open interest. Cotton futures in the domestic market gained 0.6 percent on November 5 to settle at Rs 19,770 per bale on the MCX.
The Cotton Association of India expects Indian Cotton exports to increase by 40 percent in 2020-2021 season to 70 lakh bales (170 kg) amid weak rupee and rally in global cotton prices.
It said active Indian Cotton contract on the MCX traded at a discount of 7 percent from Cotlook A prices of 77 cents on November 5.
In the futures market, cotton for November delivery touched an intraday high of Rs 19,820 and an intraday low of Rs 19,550 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 slide Rs 140, or 0.71 percent, to Rs 19,630 per bale at 14:46 hours IST on a business turnover of 1,319 lots. The same for December contract declined Rs 160, or 0.80 percent, to Rs 19,800 per bale with a business volume of 131 lots.
The value of November and December’s contracts traded so far is Rs 8.68 crore and Rs 0.54 crore, respectively.
Mohit Vyas, Analyst at Kotak Securities, said uncertainty over the US Presidential elections and impact of the second wave of the lockdowns in European countries may keep Cotton range-bound with positive bias for the near future.
At 09:19 (GMT), US Cotton futures were down 0.77 percent quoting at 69.53 cents/pound on Intercontinental Exchange (ICE).For all commodities related news, click here