Cotton futures traded marginally higher at Rs 21,490 per bale on February 16 as participants trimmed their positions as seen from open interest. Cotton prices had gained 0.2 percent on February 15 to settle at Rs 21,440/bale on the MCX.
The agri commodity traded in the positive territory after a gap-up start in the afternoon session.
Mohit Vyas, an analyst with Kotak Securities said, “Persistent rally in Cotton prices in the global market is likely to keep domestic cotton range-bound with positive bias for the near future.”
MCX February Cotton trades at a discount of 15 percent from Cotlook A price of 93.20 cents as on Friday.
Cotton arrival in the first 10 days of February touched nearly 1.65 lakh tons, down 30 percent from last year.
In the futures market, cotton for February delivery touched an intraday high and low of Rs 21,590 and Rs 21,480 per bale, respectively on the MCX. So far in the current series, the commodity has touched a low of Rs 20,700 and a high of Rs 21,700.
Cotton futures for February delivery gained Rs 50, or 0.23 percent, to Rs 21,490 per bale at 15:16 hours IST on a business turnover of 4,388 lots. The same for March contract rose by Rs 60, or 0.28 percent at Rs 21,810 per bale with a business volume of 4,933 lots.
The value of February and March’s contracts traded so far is Rs 43.71 crore and Rs 43.92 crore, respectively.
Geojit Financial Services said though profit-booking witnessed in the last session, as long as prices trade above Rs 21,350, we could see upside moves targeting Rs 21,600-21,650 levels.
At 09:48 (GMT), US Cotton futures soared 1.47 percent quoting at 89.98 cents/pound on Intercontinental Exchange (ICE).
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