Cotton futures traded weak at Rs 18,170 per bale on September 30.
Mohit Vyas, Analyst at Kotak Securities, said, “Recovery in ICE Cotton futures from lower levels, procurement by Cotton Corporation of India (CCI) from today (October 1) and improved demand from millers and ginners have supported cotton prices.”
The prospect of strong export demand this season and crop loss concerns in major cotton-producing states have lifted sentiments in domestic cotton prices.
According to government notification, CCI is likely to commence FAQ Cotton procurement from October 1 at the minimum support price.
In the futures market, cotton for October delivery touched an intraday high of Rs 18,230 and a low of Rs 18,170 per bale on the Multi-Commodity Exchange (MCX). So far in the current series, the commodity has touched a low of Rs 16,060 and a high of Rs 18,260.
Cotton futures for October delivery slipped Rs 40, or 0.22 percent, to Rs 18,170 per bale at 15:12 hours IST on a business turnover of 788 lots. The same for November delivery gained Rs 30, or 0.17 percent, to Rs 18,210 per bale on a business turnover of 414 lots.
The value of October and November’s contracts traded so far is Rs 4.77 crore and Rs 0.63 crore, respectively.
Kotak Securities expect cotton to consolidate near the current range in coming sessions. US Department of Agriculture will release weekly export number in the evening, which will be crucial for deciding the course of cotton future prices in the international market.
For all commodities related news, click here
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
