Cotton futures trade firm at Rs 18,320 per bale

Cotton futures traded firm at Rs 18,320 per bale on October 7 as participants widened their positions. The commodity had declined 0.3 percent on October 7 on the Multi-Commodity Exchange (MCX) due to profit-booking.

Cotton futures have recovered tracking recovery in ICE Cotton futures. Also, Cotton Corporation of India (CCI) has started procurement and improved demand from millers and ginners.

Mohit Vyas, Analyst at Kotak Securities, said, “We may see some consolidation in cotton in the next couple of sessions before the World Agricultural Supply and Demand Estimates (WASDE) report on October 9. But CCI procuring cotton at the minimum support price (MSP) and expectation of good export demand will keep cotton steady with a positive bias.”

In the futures market, cotton for October delivery touched an intraday high of Rs 18,390 and a low of Rs 18,280 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 18,390.

Cotton futures for October delivery gained Rs 30, or 0.16 percent, to Rs 18,320 per bale at 15:28 hours IST on a business turnover of 652 lots. The same for November delivery rose Rs 120, or 0.66 percent, at Rs 18,430 per bale on a business volume of 395 lots.

The value of October and November’s contracts traded so far is Rs 6.82 crore and Rs 6.04 crore, respectively.

Kotak Securities expects cotton to consolidate in its current range with the expectation of marginal losses in coming sessions.