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Cotton futures were trading higher at Rs 21,840 per bale on April 8 as participants reduced their positions as seen from open interest. Prices had risen Rs 40 or 0.19 percent on March 7 to settle at Rs 21,610/bale on the MCX.
The agri commodity traded in the positive territory after a gap-up start in the evening session tracking firm global trend.
The soft commodity has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart. The Relative Strength Index (RSI) is at 56.89 which indicates bullish momentum in prices.
“ICE Cotton futures have marginally recovered since past couple of days after adverse climate condition forecast in the US largest cotton-producing state, Texas. Rising cotton prices in overseas market and failing supply in the physical market have helped domestic cotton to recover since the beginning of this week”, said Mohit Vyas, Analyst at Kotak Securities.
The market is likely to trade sideways ahead of US weekly export sales report today and WASDE report tomorrow, Vyas noted.
MCX April Cotton trade at a discount of 9 percent from Cotlook A price of 85.10 cents as on Tuesday.
In the futures market, cotton for April delivery touched an intraday high of Rs 21,870 and an intraday low of Rs 21,600 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 20,340 and a high of Rs 22,760.
Cotton futures for March delivery rose Rs 230, or 1.06 percent, to Rs 21,840 per bale at 18:47 hours IST on a business turnover of 7,169 lots. The same for May contract gained Rs 200, or 0.91 percent at Rs 22,150 per bale with a business volume of 1,524 lots.
The value of April and May’s contracts traded so far is Rs 62.64 crore and Rs 24.84 crore respectively.
At 1319 (GMT), US Cotton futures was up 1.09 percent quoting at 80.37 cents/pound on Intercontinental Exchange (ICE).
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