Cotton futures surged to Rs 19,140 per bale on October 14 as participants widened their positions as seen from open interest. Rising for the fifth consecutive day, cotton settled at Rs 19,100/bale on the MCX on October 13, up Rs 10.
ICE Cotton December futures continued with steady gains and settled near 68.83 cents/pound level on October 13.
“After scaling near Rs 19,100 levels, October contract witnessed some profit booking on higher price levels and retreat from higher levels to end up with marginal gains,” said Mohit Vyas, analyst at Kotak Securities.
He said the prospect of better cotton export from India is brighter after the International Cotton Advisory Committee (ICAC) projected global cotton to decline 5 percent this season.
In the futures market, cotton for October delivery touched an intraday high of Rs 19,220 and an intraday low of Rs 18,940 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 19,220.
Cotton futures for October delivery rose by Rs 190, or 1 percent, to Rs 19,140 per bale at 14:46 hours IST on a business turnover of 577 lots. The same for November contract jumped Rs 140, or 0.73 percent, to Rs 19,300 per bale with a business volume of 565 lots.
The value of October and November’s contracts traded so far is Rs 4.63 crore and Rs 4.44 crore, respectively.
Apart from sporadic jolts, we expect cotton to trade range-bound with positive bias for the near future, said Vyas.
Source:-moneycontrol.com