Cotton futures up 0.28% to Rs 17,930 per bale in afternoon session

Cotton futures were marginally higher at Rs 17,930 per bale on September 21 as participants trimmed their positions as seen from open interest.

Cotton prices have gained in the past few sessions on good demand from millers in anticipation of a recovery in demand from end consumers ahead of the festive season.

The arrival of new crop in the domestic market, CCI resuming old cotton auction and bumper production prospects are likely to keep cotton range-bound with negative bias for the near future, said Mohit Vyas, Analyst at HDFC Securities.

According to Agriculture Ministry data, cotton acreage across the country as of September 18 reached near 129.5 lakh hectares compared to 127.1 lakh hectares in the same period last year.

In the futures market, cotton for October delivery touched an intraday high of Rs 18,000 and an intraday low of Rs 17,930 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 18,260.

Cotton futures for October delivery gained Rs 50, or 0.28 percent, to Rs 17,930 per bale at 14:57 hours IST on a business turnover of 788 lots.

The value of October contract traded so far is Rs 2.15.

Kotak Securities said the trading range for the day in MCX October Cotton contract would be Rs 17,850-18,100 per bale.