Mumbai - Cotton futures were trading slightly higher amid speculative buying during the last trading session of the week on both the domestic exchanges Saturday. While NCDEX April-08 cotton gained Re 0.80/20kg, the MCX April-08 cotton rose Re 0.50/20kg.

ICE Futures US pit-traded cotton trod downward to rest near session-lows Friday as strong physical supply met uninterested demand in continued liquidation, analysts said. The December contract settled 80 points lower at 60.90 cents a pound ahead of Nov 26 first notice day, and March settled down 34 points to 66.14 cents. However, December 08 closed 66 points higher at 73.41 cents, a telling indicator of traders' predictions for next year's crop.

Meanwhile, continuing with the recent surge in prices, cotton lint traded at its season's high amid improved demand from exporters and millers at the spot markets across north India Friday. The rising cotton prices, however, are increasing the worries of traders, who are expecting a short pause in the surge so that they could make purchases for completing pending orders. Cotton prices are getting stronger in the northern belt but the volume of trade in not increasing accordingly. Total kapas arrival across north India was recorded at 25,000 bales while 3000 bales were traded by the noon.

Across the western parts of the country, cotton lint traded almost steady amid increased arrivals and average demand from exporters. Demand from exporters and millers is persisting in the markets, but the increase in arrivals checked further rise in cotton lint prices.

At 10.10 am IST, benchmark NCDEX April-08 cotton futures rose Re 0.80 to trade at Rs 462/20kg. Open interests in April-08 cotton was 5441 lots. NCDEX March-08 cotton went up Re 1 to trade at Rs 459/20kg. Open interests for the contract were positioned at 611 lots.

MCX April-08 cotton gained Re 0.50 to trade at Rs 447.50/20kg.

[Source: Dow Jones Newswire, MCX & NCDEX]