The futures of cotton are sold for as low as Rs 22,110 per bale on May 14 as participants cut their positions as evidenced by the open interest. Agri’s assets were sold red after the start of the gap despite strong international practice and a strong framework.
Cotton exports to India in the 2020-21 market year (October-September) are reflected in 38 million barrels, up 4 percent per year.
Cotton sales in the country are likely to be 20 percent higher than 1.02 million tonnes by 2020-21 (October-September) supported by competitive prices in global markets and improved international cotton consumption, Care Rating said. More high exports and demand for domestic cotton will help reduce the supply of cotton residue in the country despite the high supply, says the cultural rating agency.
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Sunand Subramaniam, Senior Research Associate, Choice Broking said, “We look forward to the future of MCX Cotton trading in the bearish as cotton growers from various regions plan to expand the area for the upcoming 2021-22 Kharif season. Indian textile mills have reduced productivity due to declining domestic demand and a shortage of workers. ”
“The government has allowed the mills to operate but the markets are closed so the mills are facing a financial crisis. The textile industry in the export sector continues to strengthen as Indian yarn prices attract. Cotton exports are very low due to COVID cases and closures in many parts of the country, ”said Subramaniam.
In the futures market, May delivery cotton hit a high intraday of Rs 22,130 and a low intraday of Rs 21,840 per bale on the MCX. So far in the current series, goods have hit a low of Rs 20,680 and a high of Rs 22,950.
Cotton futures for May delivery dropped by Rs 150, or 0.67 percent, to Rs 22,110 per bale in 16:46 IST business profits for 6,250 lots. The same for the June contract slides Rs 130, or 0.58 per cent for Rs 22,410 per bale per business volume of 3,132 lots.
The total number of May and June contracts sold to date is Rs 30.77 crore and Rs 11.52 crore respectively.
Technology
Soft commodities have been trading more than the 5, 20, 50, 100 and 200 simple moving averages (SMA) and the dynamic moving average (EMA) on the daily chart. The relative strength index (RSI) is at 58.37 indicating strong price movements.
In 1116 (GMT), US Cotton futures rose 1.01% quoting 85.84 cents / pound on the Intercontinental Exchange (ICE).
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