Cotton futures firm at Rs 19,920 per bale in afternoon trade

Cotton

Cotton futures traded firm at Rs 19,920 per bale on December 4 as participants widened their position. Cotton futures in the domestic market fell 0.3 percent yesterday to settle at Rs 19,840 per bale on the MCX.

According to Cotton Corporation of India data, the organisation has so far procured more than 31 lakh bales of Cotton across the country which is 5 times the same period last year.

Indian Cotton traded at 8 percent discount from Cotlook A prices of 78.35 cents as on Wednesday.

Cotton arrival across the country touched nearly 5.1 lakh tons, which is up by 60 percent month-on-month.

Also read: Cotton prices drop as arrivals flood markets, mills go slow on buying

In the futures market, cotton for December delivery touched an intraday high of Rs 19,990 and an intraday low of Rs 19,790 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 16,350 and a high of Rs 20,670.

Cotton futures for December delivery gained Rs 80, or 0.40 percent, to Rs 19,920 per bale at 16:06 hours IST on a business turnover of 2,527 lots. The same for January contract rose Rs 60, or 0.30 percent at Rs 20,170 per bale with a business volume of 115 lots.

The value of December and January’s contracts traded so far is Rs 11 crore and Rs 1.05 crore respectively.

Mohit Vyas, Analyst at Kotak Securities said, "Cotton to sustain above 70 cents level and soon rebound from lower levels in coming session on account of demand revival globally this season."

At 10:38 (GMT), US Cotton futures jumped 0.69 percent quoting at 71.60 cents/pound on Intercontinental Exchange (ICE).