Mumbai - Cotton futures opened up extending the previous gains and were trading higher amid continued buying on both the domestic exchanges Saturday. While MCX April-08 futures gained Rs 1.80/20kg, NCDEX April-08 cotton was trading up Rs 2.90/20kg. The futures had closed with gains yesterday on support from stronger spot market prices across the country.

Earlier, ICE Futures US pit-traded cotton settled modestly higher Friday after trading in a tight-range, featureless session ahead of the holiday weekend, analysts say. March futures settled up 41 points at 66.58 cents a pound, and May settled 42 points higher at 67.95 cents.

At the spot markets Friday, cotton lint traded higher by Rs 15/maund amid stronger demand from millers across northern parts of the country. Total kapas arrival across north India was recorded at 37,000 bales while 8000 bales were traded by the noon. Traders said, cotton lint prices are unlikely to decline sharply due to increasing demand from millers, but small corrections may take place.

Cotton lint traded higher across western India. S-6 variety cotton in Gujarat traded up Rs 100-Rs 200/candy amid improved demand from exporters and millers. Traders said demand from exporters and millers from south India was persisting in the market. Exporters purchased mainly for Pakistan, Turkey and Bangladesh. Though presently there is no demand from China, the neighbouring country is expected to place some order in the coming days.

At 10.13 am IST, Benchmark NCDEX April-08 cotton futures were trading up Rs 2.90 at Rs 478.00/20kg, after fluctuating between Rs 476.40 and 478.80/20kg. Open interests in April-08 cotton was 5177 lots. NCDEX March-08 cotton was trading up Rs 3.50 at Rs 473.60/20kg. Open interests for the contract were positioned at 578 lots.

MCX April-08 futures jumped Rs 1.80 to trade at Rs 459.40/20kg.