Cotton futures on the MCX continued to rise Monday as concerns over domestic cotton production buoyed the mood. Cotton planting has lagged in the current kharif season due to lower rainfall in the country’s central and northern regions. Given the steady decline of daily Covid-19 instances over the last few months, demand appears to be supported.
There is little evidence of a pick-up in planting yet, and some traders are concerned that oilseeds would take precedence in sowing this season, reducing the area under crops like cotton. According to the most recent data, cotton plantings are down 7.62 percent year on year as of July 23rd, 2021. Today, the MCX Cotton futures for August soared beyond Rs 27000 per bale, reaching a new contract high of Rs 27100 per bale. Over the previous two months, the counter has gained over Rs 5000 per bale.
