Cotton futures rose to Rs 19,720 per bale on November 5 as participants widened their positions as seen from open interest. Cotton futures in the domestic market ended flat yesterday at Rs 19,660 per bale on the MCX.
Mohit Vyas, Analyst at Kotak Securities said, ”Despite increasing supply in the physical market, rise in global cotton price, Cotton Corporation of India procurement and improved prospects of exports have lifted domestic cotton by Rs 550 from low levels of Monday.”
In the futures market, cotton for November delivery touched an intraday high of Rs 19,730 and an intraday low of Rs 19,660 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 climbed Rs 60, or 0.31 percent, to Rs 19,720 per bale at 14:59 hours IST on a business turnover of 1,261 lots. The same for the December contract gained Rs 60, or 0.30 percent at Rs 19,900 per bale with a business volume of 125 lots.
The value of November and December’s contracts traded so far is Rs 3.39 crore and Rs 1.93 crore respectively.
Kotak Securities expect Cotton to trade range-bound with positive bias for near future amid lower cotton output and inventories in US increasing world Cotton consumption demand and end of state reserve sale in China.
At 09:34 (GMT), US Cotton futures was up 0.30 percent quoting at 70.51 cents/pound on Intercontinental Exchange (ICE).