MCX Cotton closed higher as market participants initiated fresh buying on concern about excess rains in cotton growing areas in Gujarat. However, good progress in cotton sowing in the country capped further gain. As per latest data from Agricultural Ministry, cotton is planted in 90.1 lakh hectares (l ha) till last week, higher 23% compared to last year acreage of 74 lakh ha for same period. USDA in its latest monthly report increase the production forecast by 1.28 million bales (1 bale = 170 kg).

Outlook

Cotton futures are expected trade sideways to higher on reports of heavy rains in cotton growing areas of Gujarat coupled with good physical demand in the country. However, sufficient stocks good acreage in the country may keep the prices in a range.

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