Karvy Commodities report on Cotton
Cotton and Kapas futures traded higher by end of the week as short supply of good quality of cotton amid increasing off take by millers supported uptrend of cotton prices at futures platform . Rolling over of open positions was seen for near month cotton contract at MCX as total open interest fell by 7% whereas prices move d up by 0.4% to Rs.17370/bales on Friday. Likewise, June delivery cotton contract closed at Rs.17580/bales, up by 0.46%.
Similarly, cotton prices rose in spot market too on account of fresh buying amid tight supply on good quality of cotton stocks. Gujarat Shankar – 6 cotton hovered at 35300/candy at Rajkot.
The Benchmark Kapas contract at NCDEX gained 0.62% to Rs.889.50/ 20kg on increasing buying interest from ginners whereas NCDEX near month cocud contract closed at Rs.2245/quintal, higher by 0.18% from th e previous close.
At global front, ICE cotton rebound on higher weekly export sale amid rising buying interest for both season crops. Moreover, reports on rising possibilities of area shifting from cotton to soybean also supported uptrend of ICE cotton on Friday. July delivery cotton contract settled at 61.67 cent/lb, up by 0.98% from the previous close.
The benchmark of global cotton prices Cotlook A index fell by 1.2% to 69.35 on Friday.
Cotton and Kapas futures are likely to trade sideways during today’ s session on account of changin g short term fundamentals of the commodity. Cotton prices showed upward movement during last week as emerging buying interest from traders amid shrinking supply of cotton arrivals proved enough to keep cotton prices higher.