Mumbai - Buoyant over stronger domestic spot prices and the bullish international markets, cotton continued to gather sharp gains amid continued buying by traders on both the domestic exchanges Monday. While NCDEX April cotton surged Rs 5.40/20kg, MCX April cotton accumulated Rs 2.70/20kg.

In Gujarat spot markets Saturday, S-6 variety of cotton lint traded sharply up by Rs 700-Rs 800/candy amid limited selling, improved demand from exporters and bullish international markets. Exporters finalised deals of 80,000 bales of cotton at the rate of Rs 22,000/candy in Gujarat on Friday.

Cotton lint surged by another Rs 40/maund across north India Saturday amid limited selling, improved demand from exporters and bullish international market. Around 12,000-13,000 bales of kapas arrived in the entire northern region today.

Export of Indian cotton has increased following depreciation in rupee in the international market. Sources say, fresh deals to export around 4.5 lakh bales of cotton were finalised in the last few days. And now exporters are buying heavily to complete the export orders.

A senior official in the cotton industry said that a major export company is purchasing for renowned trading companies like Louis Dreffin, Noble and Cargil. Ginners have slowed down sales and have started piling up stocks of cotton lint expecting more rise in prices.

Earlier, ICE Futures US pit-traded cotton settled higher Friday on a combination of traders positioning themselves ahead of first notice, short traders exiting nearby March and on strong export sales, analysts said. March futures settled 239 points higher at 75.62 cents a pound and May cotton ended up 85 points at 75.81 cents. Both futures months hit contract highs early in the session, and May moved up the limit 300 points just ahead of the pit close.

At 10.40 am IST, NCDEX benchmark April cotton jumped Rs 5.40 to trade at Rs 533.10/20kg, after witnessing movement between Rs 530.30 and 534.40/20kg. Open interest in April cotton was 7365 lots. NCDEX March cotton shot up Rs 9.20 to trade at Rs 523.00/20kg. Open interest in March cotton was 223 lots.

MCX April-08 futures were trading up Rs 2.70 at Rs 496.10/20kg.