Home CommodityKAPAS

KAPAS

1,600.00

0.00 (0.00%)

as on 01 Jan 1980 at 05:30 AM

MCX

Upcoming Expiry30 Nov

Days For Expiry64

KAPAS

1,600.00

0.00 (0.00%) profit

as on 01 Jan 1980 at 05:30 AM

MCX

Futures 15-Mins Built Up

Live Chart

KAPAS Futures Snapshot

Monthly Contracts	Days for Expiry	LTP
KAPAS NOV FUT	65	1,600.00
KAPAS FEB FUT	153	1,600.00
KAPAS APR FUT	216	1,600.00

About KAPAS Futures

Cotton is a Kharif crop that is sown between June and July, while harvesting runs from October to March. India ranks among the world's top cotton-producing nations. It supports farmers across Gujarat, Maharashtra, and Andhra Pradesh. When cotton prices move, entire supply chains feel it. KAPAS futures let you trade raw cotton prices on MCX without handling physical bales.

Each KAPAS contract represents 4 metric tonnes. This equals 200 maunds of 20 kg each. The price quotes ex-warehouse Rajkot. Contracts are rupee-denominated and settled daily. You get exposure to cotton price swings with lower capital than buying physical cotton.

Factors influencing KAPAS futures prices

Cotton prices move with weather, policy, and global demand. Several forces interact to set the KAPAS futures price on any given day.

Monsoon and weather patterns: Cotton sowing is dependent on the Southwest Monsoon. Sowing is delayed because of the absence of rain. This makes supplies more scarce and increases prices. During harvest, any excess rain will have a negative impact on the quality of the fibre. When there is drought in Gujarat/Maharashtra, the yield decreases. Both are futures on KAPAS.

The impact of pests on crop health: Pink bollworm infests have been affecting the cotton crops of India in the last few seasons. Yield is also reduced by infestation with whitefly and aphids. The outturn percentage is lowered due to pest outbreaks. A lower outturn indicates that there is less usable fibre per quintal of raw cotton. This increases the price.

Minimum Support Price (MSP) and government procurement: The Government fixes the MSP for cotton for every season. Cotton Corporation of India buys the cotton crop at MSP if the market rate is less than MSP. With CCI procurement, there is a price floor. The larger the purchase, the tighter the physical supply and the more it backs the futures.

International prices and demand for cotton.: India exports cotton to China, Bangladesh and Vietnam. ICE Cotton No. 2 futures on Intercontinental Exchange (ICE) set the global benchmark. When the prices of commodities and products go up in the world, the demand for exports goes up in India. This increases the domestic rate and KAPAS futures.

Textile industry demand: Indian cotton is mostly used in domestic mills. The offtake of raw cotton is influenced by the rate of production of yarn and fabric. As mill margins get better, then purchases increase. With margins closing down, mills delay buying. This pace is reflected in spot and futures prices.

How are KAPAS futures prices determined?

The KAPAS futures price is not arbitrary. It links to the Rajkot spot market through a defined structure.

The Due Date Rate (DDR) or Final Settlement Price is based on polling. The exchange calculates the simple average using the last polled spot prices from the last three trading days: expiry day (E0), the day before (E-1), and two days before (E-2). Furthermore, if either E-1 or E-2 is unavailable, the exchange expands the lookback to include E0, E-1, E-2, and E-3, using whichever of these is available.

Between spot and futures, the gap reflects financing costs, storage costs, and market sentiment. When futures trade above spot, the market is in contango. When below, it is in backwardation. This spread indicates immediate supply tightness or comfort.

Key metrics to consider while trading KAPAS futures

These numbers define how the contract behaves. Know them before you place a trade.

Lot size: 4 metric tonnes. One KAPAS contract represents 200 maunds, each weighing 20 kg. This is the standard raw cotton contract on MCX.
Tick size: 50 paise per 20 kg. Each tick move changes the contract value by Rs. 100.
Contract start day: 1st day of the contract launch month. If the 1st day is a holiday, the following working day.
Contract expiry: The contract expires on the last calendar day of the month. Should that day fall on a holiday or Saturday, the expiry moves to the previous working day.
Initial margin: Minimum 8% or based on SPAN, whichever is higher. This is the margin required to open a position.
Extreme loss margin: Minimum 1%, collected on top of the initial margin.
Additional and special margin: In case of additional volatility, the exchange may impose additional margin on both buy and sell sides, or special margin on either side.
Daily price limit: 4% initial slab. Once breached, after 15 minutes, the limit expands by 2% to a total of 6%. Trading continues during the 15-minute period within the initial slab.
Maximum order size: 50 lots, i.e. 200 MT: You cannot place a single order beyond this quantity.
Open Interest (OI): Total outstanding contracts. Rising OI with rising prices shows fresh buying. Rising OI with falling prices shows fresh shorting.
Delivery: Both option and compulsory depending on contract terms. Delivery unit is 1 lot (4 MT with +/-1% weight tolerance).
Maximum open position: Individual clients face a cap of 1,70,000 MT. Members face 17,00,000 MT or 15% of market-wide open position, whichever is higher. Near-month limits are 42,500 MT for individual clients.
Quality specifications: The raw cotton grade specifies a 29mm staple length basis with a minimum 34% outturn and a maximum 3% trash. Quality parameters include 3.8-4.0 micronaire, minimum 29 GTex strength, Rd 75-81, +b 7.5-9.5, and moisture capped at 8%.
Delivery centre: Ex-warehouse Rajkot (Gujarat), within a 100 km radius of Rajkot municipal limits.

How to read KAPAS futures data?

On the KAPAS futures page at Dhan, several data points appear. Each one adds a layer to your read.

KAPAS futures live price: This shows the current traded level of the most active contract. This is where buyers and sellers are matching right now.

KAPAS futures today: This data includes open, high, low, and last traded price. The difference between high and low shows intraday volatility.

KAPAS futures chart: This plots historical price action across timeframes. You can view 1-minute, 5-minute, 15-minute, daily, weekly, or monthly charts. Traders use these to spot support, resistance, and trend direction.

Volume: This is the number of contracts traded in the session. A price move on high volume carries more weight than one on thin volume.

OI: This tells you how much capital sits in open positions. If price rises and OI rises, the trend has backing. If price rises and OI falls, the move may be short-covering.

Bid-ask spread: This is the gap between the best buy and sell prices. A narrow spread means the contract is liquid. A wide spread signals lower activity.

Benefits of trading KAPAS futures

This contract offers specific advantages over physical cotton or other hedging tools.

Direct price participation: You track Rajkot warehouse cotton without buying, storing, or grading physical bales. No warehouse risk. No quality dispute.

Hedging for ginners and traders: Cotton ginners and traders can lock in purchase or sale prices. A ginner anticipating cotton acquisition the following month can speculate on the rate now.

Seasonal trading opportunity: Cotton is a seasonal crop. There tends to be a peak in prices just prior to harvest and a decline following the arrival. Traders can take advantage of these cycles.

Leverage: You have a margin deposit for a 4-MT cotton position. This allows for investment in other trades. Don't forget that leverage enhances your profits and your losses.

Transparency: MCX is SEBI-regulated. Prices are public. Settlement rules are fixed. The clearing company is responsible for counterparty risk, not your trading partner.

Most commonly used strategies in KAPAS futures

Traders approach this contract with different goals. These are the most common methods.

Directional trading: Buy if you expect cotton prices to rise. Short if you expect a fall. This is the simplest approach. Use stop-losses to cap downside.

Calendar spreads: Buy one expiry month and sell another. You profit from the spread between months, not the absolute price move. This carries a lower margin and lower volatility than outright positions.

Hedging by ginners: A cotton ginner with a large order book can buy KAPAS futures to lock in raw material cost. If physical cotton rises, the futures gain offsets the higher purchase price.

Basis trading: Trade the gap between MCX futures and Rajkot spot. When the basis widens beyond normal, it may revert. This needs an understanding of local supply and warehouse availability.

Range trading: When cotton trades in a band, buy near support and sell near resistance. This works in sideways markets. It fails when cotton breaks out on weather or policy news.

How to trade KAPAS futures on Dhan?

Open your account: Create a commodity trading account on Dhan and complete full KYC with a registered broker. Ensure the MCX commodity futures segment is activated separately from your equity account.
Add funds: Add money to your trading account and ensure sufficient margin is available for your KAPAS futures positions. Dhan displays margin requirements clearly before order placement.
Pick your contract: Choose the KAPAS futures contract based on your preferred expiry. Near-month contracts carry the highest liquidity. Each lot represents 4 MT.
Read the market data: Analyse the KAPAS futures live price alongside open interest, volume, and price trends before entering a position. Review live contract details directly on the instrument page under MCX commodities.
Place your trade: Execute your order using the appropriate order type. Market orders fill at the current price. Limit orders execute only at your specified price. The maximum order size is 50 lots.
Track your position: Monitor KAPAS price movements, OI shifts, and MTM adjustments actively through the session. The contract is sensitive to weather updates, pest reports, and CCI procurement news.
Adjust when needed: Modify or exit positions based on market developments, price behaviour around key levels, and your original strategy parameters. Set stop loss levels that align with your risk capacity.
Know the contract type: KAPAS commodity futures follow a daily MTM settlement model. Your account gets credited or debited for profits and losses at the close of each trading session. Delivery is optional or compulsory depending on contract terms. Most retail traders square off before expiry.

Tips for trading KAPAS futures effectively

These are the strategies for you to manage risk and to read the market better.

Apply set stops with the Trade Plan for position sizing: Dhan Charts features a built-in Trade Plan tool. Enter the percentage of your capital, risk percentage, and reward percentage. It determines the exact amount, stop-loss price, and target price automatically. This eliminates guesswork in position sizing.
Trade from several time frame charts: What you see on the daily chart could be different from what you see on the hourly chart. Align both before getting into a position. Custom timeframes and views of sessions applicable to India are available with Dhan Charts.
Insert the margin cycle: The mark-to-market of MCX is conducted every day. Agricultural products are subject to price changes when weather updates happen. Adverse move accounting position sizing is more powerful than margin minimum position sizing. Size for volatility, not margin with the Trade Plan.
Watch monsoon progress: Crops grown using cotton are monsoon-dependent crops. Monitor IMD forecast for Gujarat and Maharashtra. The delayed and weak monsoon is harmful for sowing and also raises prices. Excessive rain during harvest (October-November) results in reduced quality.
Monitor pest reports: Pink bollworm and whitefly infestations decrease fibre quality and outturn. Pest alerts are issued by the state agriculture departments and by CAI. Such reports tend to push prices ahead of official yield reports.
Follow up on CCI procurement information: Cotton Corporation of India reports the price and volume of procurement every day. If the CCI buying crosses set levels, it indicates a price floor. This information impacts the sentiment for both spot and futures.
Track ICE cotton for world signs: The futures for ICE Cotton No. 2 are the benchmark for the world. The export competitiveness of Indian products is dependent on domestic and international prices. ICE rallies and KAPAS futures tend to follow with a delay.
Sizing circuit breakers: 4% to 6% circuit breakers can keep you stuck in a situation for a brief time. Make trades that you don't need to worry about getting hit on the limits. With the Trade Plan, you can establish risk limits prior to entering a trade.
Be familiar with the delivery window: The tender period is during the final trading days of the contract. If you don't wish to take a physical settlement, leave in advance of this window. Delivery from our warehouse in Rajkot within a 100 km radius of Rajkot is ex-warehouse basis.

FAQs

What is 1 lot size of KAPAS futures?

1 lot of KAPAS Futures on MCX is 200.

What is the trading time for KAPAS futures?

The trading time of KAPAS futures is:

April to October - 9:00 AM to 11:30 PM
November to March - 9:00 AM to 11:55 PM

When is the upcoming KAPAS futures expiry?

The upcoming futures expiry of KAPAS on 30 Nov 2026.

Are KAPAS futures settled in cash or via physical delivery?

At the end of the day, all the positions are auto squared off. Meaning, the derivatives are settled in cash. At present, the physical delivery of Commodity position is not allowed.