Cotton futures traded steady at Rs 21,860 per bale on April 30 as participants reduced their positions as seen from open interest. The Agri commodity recouped earlier losses and traded in the green, 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 momentum indicator Relative Strength Index (RSI) is at 55.73, which indicates bullish movement in prices.
“Bullish cues from April WASDE report, forecast of adverse weather condition in the US largest cotton-producing state Texas ahead of peak sowing season helped ICE Cotton futures to reclaim 90 cents level this week”, said Mohit Vyas, an analyst with Kotak Securities.
According to Agmarknet data, cotton arrivals across the country during April 1-25 plunged below 40,000 tons, down by 70 percent month-on-month.
In the futures market, cotton for May delivery touched an intraday high of Rs 21,930 and an intraday low of Rs 21,630 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 20,680 and a high of Rs 22,950.
Cotton futures for May delivery jumped by Rs 40, or 0.18 percent, to Rs 21,860 per bale at 19:08 hours IST on a business turnover of 8,592 lots. The same for June contract gained Rs 20, or 0.09 percent at Rs 22,140 per bale with a business volume of 75 lots.
The value of May and June’s contracts traded so far is Rs 54.48 crore and Rs 1.37 crore, respectively.
At 13:40 (GMT), US Cotton futures jumped 1.49 percent quoting at 87.83 cents/pound on Intercontinental Exchange (ICE).
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