Cotton futures traded above Rs 21,840 per bale on April 8 as participants reduced their positions as evidenced by open interest rates. Prices were up by Rs 40 or 0.19 per cent on March 7 to be paid at Rs 21,610 / bale on MCX.
Agricultural property was sold in a good location after the gap started at the start of a strong global tracking session.
Soft commodities have been trading more than 5, 20, 50, 100 and 200 day moving averages on the daily chart. The Relative Strength Index (RSI) is at 56.89 which shows price pressure in prices.
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“The future of ICE Cotton has recovered a bit over the past few days following the unfavorable weather conditions in the American largest cotton producer, Texas. Rising cotton prices in overseas markets and the failure of real estate markets have helped domestic cotton return since the start of this week, ”said Mohit Vyas, a Kotak Securities analyst.
The market is likely to trade side by side with the US weekly retail report today and the WASDE report tomorrow, Vyas said.
MCX April Cotton sells at a 9 percent discount from Cotlook A at a price of 85.10 cents as of Tuesday.
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In the futures market, April delivery cotton hit a high intraday of Rs 21,870 and a low intraday of Rs 21,600 per bale on the MCX. So far in the current series, goods have hit a low of Rs 20,340 and a high of Rs 22,760.
The futures of cotton delivery in March increased by Rs 230, or 1.06 percent, to Rs 21,840 per bale in 18:47 IST for a business profit of 7 169 lots. The same May contract received Rs 200, or 0.91 per cent to Rs 22,150 per bale per business volume of 1,524 lots.
The total number of April and May contracts sold to date is Rs 62.64 crore and Rs 24.84 crore respectively.
In 1319 (GMT), US Cotton futures were up 1.09 percent quoting at 80.37 cents / pound on the Intercontinental Exchange (ICE).