MCX Cotton Nov futures closed higher tracking good surge in kapas contract in NCDEX. However, prices of cotton is trading steady as arrivals have increase in the country. Moreover, cotton exports from country may be affected due to hike in procurement prices in largest producing state of Gujarat. In November, cotton traded sideways in a range on higher than expected cotton production in the country. 

CCI has stared its procurement from Telangana and some parts of Gujarat and estimated to have procured about 62,000 bales at MSP this season. The arrivals in the current season during Oct are about 20.27 lakh bales compared to 18.72 lakh bales last year as per ICC.

Outlook

Cotton futures are expected trade sideways to higher as CCI has already start its procurement in main cotton growing states. Procurement by government will support prices as it increase the demand from the stockists, mills and physical traders They have a target to procure 100 lakh bales this season. Good demand for kapas may also support cotton prices.

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