In the futures market, cotton for October delivery touched an intraday high of Rs 19,860 and an intraday low of Rs 19,570 per bale on the MCX.
Cotton futures trade lower at Rs 19,570 per bale on October 26 as participants trimmed their positions as seen from open interest. Cotton futures in domestic market gained 2.48 percent last week on the MCX.
“Recovery in demand from domestic millers, lower global cotton crop against improving demand, prospects of better cotton exports, Cotton Corporation of India procurement and slow pace of new crop arrival this season have kept Cotton firm in last thirteen straight weeks”, said Mohit Vyas, Analyst at Kotak Securities.
The expectation of some profit booking on higher prices levels, we expect Cotton to trade range-bound with negative bias for the near future, he said.
Indian Cotton trades at 6 percent discount from Cotlook A prices of 76.85 cents as on October 22.
In the futures market, cotton for October delivery touched an intraday high of Rs 19,860 and an intraday low of Rs 19,570 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 fell Rs 260, or 1.31 percent, to Rs 19,570 per bale at 15:22 hours IST on a business turnover of 151 lots. The same for November contract dropped Rs 70, or 0.35 percent at Rs 19,700 per bale with a business volume of 924 lots.
The value of October and November’s contracts traded so far is Rs 1.97 crore and Rs 8.81 crore respectively.
At 09:53 (GMT), US Cotton futures were trading up 0.24 percent quoting at 71.46/pound on Intercontinental Exchange (ICE).For all commodities-related news, click here