MCX Cotton Oct futures jumped higher on Friday to close week on high as Gujarat government has announced a bonus of 500 per quintal over and above the minimum support price of 4,020. The Cotton Corporation of India is set to open its procurement centers in major cotton-growing states as it is believed that the prices may decrease below the MSP during the peak arrival season. The arrivals in the current season during Oct are about 4.21 lakh tonnes compared to 3.9 lakh tonnes last year.

Outlook

Cotton futures are expected trade sideways tracking weak international prices and on reports of improved arrivals from the new season crop in the domestic market. However, higher bonus declared by the Gujarat government, CCI procurement and improved exports demand for Indian cotton may support prices.

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