Cotton on MCX settled up by 1.37% at 21450 due to expectation of export demand to China. Though, some gains were limited on good arrivals from major producing belts. The cotton trade body maintains a higher crop size of 34.1 against 33.8 million bales, prices are unlikely to cool off in the near future. With an opening stock of about 4.5 million bales at the beginning of the 2016-17 season, the Cotton Association of India (CAI) has projected a total demand of 29.5 million bales for the year, against 38.2 million bales last year. 

CAI's estimates put available the surplus at 11.2 million bales. However, looking at the trends in cotton arrivals at mandis, as much as 70 per cent of the crop is believed to have already hit the market.

Trading Ideas: 

*Cotton trading range for the day is 21043-21683. 

*Cotton prices ended with gains due to expectation of export demand to China. 

*The cotton trade body maintains a higher crop size of 34.1 against 33.8 million bales, prices are unlikely to cool off in the near future.

*Cotton prices in spot market gained by 140.00 rupees and settled at 20960.00 rupees.

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