Cotton futures traded firm at Rs 20,570 per bale after touching December series high of Rs 20,680 intraday. Cotton price surged 1 percent yesterday to settle Rs 20,470 per bale on the MCX.
The bullish WASDE report, aggressive procurement by Cotton Corporation of India, attractive Indian Cotton prices in the overseas market lifted Cotton by more than Rs 800 since the beginning of the week.
Cotton prices jumped in Gujarat this week following increased demand by private yearn millers and exporters.
In the futures market, cotton for December delivery touched an intraday high of Rs 20,680 and an intraday low of Rs 20,500 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 16,350 and a high of Rs 20,680.
Cotton futures for December delivery gained Rs 100, or 0.49 percent, to Rs 20,570 per bale at 14:49 hours IST on a business turnover of 2,067 lots. The same for January contract surged Rs 100, or 0.48 percent at Rs 20,830 per bale with a business volume of 1,839 lots.
The value of December and January’s contracts traded so far is Rs 17.95 crore and Rs 13.71 crore, respectively.
"Natural fibre was on the northward march since the beginning of this month but the rally was fueled by bullish WASDE report. USDA has also increased global cotton consumption demand by more than 1.5 million bales, which is likely to keep Cotton firm for the near future," said Mohit Vyas, Analyst at Kotak Securities.
At 09:23 (GMT), US Cotton futures jumped 0.18 percent quoting at 77.33 cents/pound on Intercontinental Exchange (ICE).
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