By Malvika Gurung
Investing.com -- The prices of Cotton Futures, to be delivered in March rose almost 1% in a fairly positive market on Wednesday, especially after the torrid performance in the previous day’s session.
On the Multi Commodity Exchange, Cotton Futures traded 0.52% or Rs 190 higher at Rs 36,730/bale, after rising 0.73% or Rs 270 to Rs 37,290/bale in the afternoon trade on Wednesday.
The cotton futures demonstrated an upward movement in today’s session, after shedding almost 5% from recording a fresh high on Feb 11, 2022.
Due to fears arising from the aggravated Russia-Ukraine situation on Tuesday, after Russia recognised two breakaway regions in eastern Ukraine as independent and ordered the army to deploy troops there, fund managers reduced their net long position on cotton futures on Tuesday.
However, according to brokerage firm Kotak Securities, the heightened geopolitical tension in the global market, demand rationalization after 10 straight weeks of a one-sided rally and drop in ICE (NYSE:ICE) Cotton futures may keep domestic cotton prices under check in coming sessions.
Analysts believe that last week’s cotton futures’ price rally was led by a jump in ICE cotton prices. lower Indian cotton crop/stock revision by USDA & CAI retrenched selling by farmers and strong demand by domestic millers, noted an ET report.