Cotton up on MCX as traders cover short positions

Futures contracts of cotton on the MCX up as investors covered short positions. Open interest in the October contract fell to 2,810 lots from 2,872 lots on 14 Sep, which indicated short covering. Expectations of a rise in India’s cotton production in 2017-18, however, are likely to weigh on prices in the near term. USDA raised its production estimate for India’s 2017-18 (Aug-Jul) cotton crop to 30.0 mln bales (1 US bale = 480 pound) from 29.0 mln bales projected in August.