Cotlook Index: 10-09-2026
97.20 (+1.10)
ICE cotton climbs on stronger crude oil, hopes of Chinese buying
Friday 11th Sep 2026, (Source: www.fibre2fashion.com)
Insights: ICE cotton futures rose for a second day, with December 2026 settling at 88.22 cents as crude oil jumped around 4 per cent. US heat and adverse weather kept crop-loss concerns alive, while ratings fell to 34 per cent Good/Excellent before Friday's WASDE report. Possible Chinese import demand supported sentiment, but a stronger US dollar and weaker ZCE cotton limited confirmation.
ICE cotton futures increased further yesterday for the second consecutive day, recovering recent losses. The recovery was supported by sharply higher crude oil prices, weather concerns and expectations that China could eventually buy cotton from a crop affected by heat. But strength in the US dollar limited the upside. The most active December 2026 contract settled at 88.22 cents, up 0.94 cent. The contract recovered further from Tuesday’s recent low of 85.56 cents per pound, which was the lowest level since August 19. The main outside-market support came from crude oil. International oil prices jumped around 4 per cent, with benchmark Brent crude reaching $105 per barrel. The escalation of tensions in the Middle East increased concerns about possible supply disruptions. Higher oil prices are also supportive for cotton relative to polyester because expensive energy raises the manufacturing cost of polyester, improving cotton’s competitiveness against the synthetic fibre. The US Dollar Index also moved higher, however, which limited cotton’s gains. A stronger dollar makes US-dollar-denominated cotton more expensive for overseas buyers and can therefore weigh on export demand. The combination of higher crude oil and a firmer dollar is creating mixed outside-market signals for cotton. Weather remains an important fundamental factor. Continued concerns over heat and adverse weather in major US cotton-growing areas are keeping crop-loss concerns alive. At the same time, expectations that China may need to purchase cotton from a crop affected by heat are providing additional speculative support. The market is now heavily focused on the USDA’s September WASDE report, scheduled for Friday. Traders are positioning ahead of the report because it could provide fresh estimates for US cotton production, exports, domestic use and ending stocks. The key question will be how USDA incorporates the recent deterioration in crop conditions and weather-related production risks into its national production estimate. The latest USDA Crop Progress data showed continued deterioration in the US cotton crop. Earlier ratings had fallen to only 34 per cent Good/Excellent, compared with 39 per cent the previous week and 54 per cent a year ago. This remains a significant supply-side concern heading into the WASDE report.
However, the US crop story is not uniform. Harvest is already underway in South Texas, where producers are reportedly seeing a strong crop after weather problems affected previous seasons. This regional strength is an important counterpoint to the deterioration being reported in other production areas and adds uncertainty over the final national US production number.
ICE deliverable stocks also remain worth watching. As of September 9, ICE No. 2 cotton deliverable stocks stood at 50,415 bales, down from 54,414 bales on the previous trading day, a decline of 3,999 bales.
China remains an important part of the global cotton story. Heat and heavy rainfall have affected several major Chinese agricultural regions, raising concerns over crop quality and yields. If these problems result in additional Chinese import demand, particularly for US cotton, it could provide an important demand-side boost to the ICE market.
China’s State Reserve has also continued selling cotton through its auction programme, while the market is watching whether Chinese authorities eventually replenish some of the cotton being released from reserves. Actual Chinese buying of imported cotton would be much more bullish than simply strong demand at the reserve auctions.
Chinese domestic cotton futures remain weaker than ICE. ZCE cotton has recently suffered repeated declines, showing that the recovery in ICE is not yet fully confirmed by Chinese domestic price action or mill demand. This divergence remains an important point to monitor.
Corn and soybean futures were slightly higher on Thursday, while wheat was little changed after the recent losses. Grain markets are also monitoring developments surrounding the Russia-Ukraine conflict, which continues to influence global commodity supply and energy markets.
After the sharp fall from the 93.14 cents contract-high close to 86.32 cents, cotton has now shown signs of building a recovery. The immediate focus is on whether December 2026 can regain and hold the 88–90 cents area. Friday’s WASDE report will be the major catalyst: a lower US production estimate or tighter ending stocks could extend the rebound, while a neutral or bearish report could bring fresh selling pressure.
This morning (Indian Standard Time), ICE cotton for December 2026 was trading at 87.49 cents per pound (down 0.73 cent), cash cotton at 80.89 cents (up 0.91 cent), the October 2026 contract at 83.45 cents (down 1.19 cent), the March 2027 contract at 89.93 cents (down 0.73 cent), the May 2027 contract at 91.20 cents (down 0.83 cent), and the July 2027 contract at 90.65 cents (down 0.78 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India's growth seen above 7% in FY27 despite inflation risks: Report
Friday 11th Sep 2026, (Source: www.fibre2fashion.com)
Insights: India's FY27 growth estimates may need to move above 7 per cent if no fresh global shock occurs, SBIFM Research said. Investment and exports, rather than consumption, are expected to carry more of the expansion, relevant for manufacturers and sourcing teams. Sticky inflation and commodity costs could keep rates higher, with possible RBI tightening.
India’s FY27 growth outlook is expected to remain above 7 per cent, with exports and investment likely to take a larger role as consumption moderates and domestic policy support fades, according to a fund-management research assessment. The SBI Funds Management (SBIFM) Research expects nominal GDP growth to accelerate to above 12 per cent in the coming quarters. It also warned that persistent inflation and elevated global commodity prices could keep interest rates higher for longer. It said that FY27 growth estimates would likely need to move above 7 per cent if there is no fresh global shock. The report also said a stronger growth path could allow real rates in India to adjust higher if inflation stays sticky. SBIFM Research based its outlook on real GDP growth of 7.8 per cent year-on-year in Q1 FY27, with investment and exports emerging as the main drivers rather than consumption. The report said real gross fixed capital formation and exports grew around 12 per cent each, compared with 7.1 per cent growth in consumption.
Corporate capital expenditure is also expected to strengthen, according to the report. Capex by BSE 500 companies is projected to rise 11 per cent in FY27 after ₹10.4 trillion ($110 billion) of capex in FY26.
For business segments, SBIFM Research said exports, manufacturing, capital goods and other business-oriented areas appear relatively more attractive, while consumption-oriented sectors require greater selectivity. The assessment is relevant for textile and apparel supply chains tracking export demand, factory investment and manufacturing-linked spending.
On risks, SBIFM Research said Brent crude could remain elevated over the next six months as China rebuilds reserves, European gas storage stays inadequate and US crude inventories decline. The report said this backdrop could keep global rates higher for longer.
For India, SBIFM Research said the Reserve Bank of India could eventually move from its current neutral stance towards tightening. The report said around 50 basis points of cumulative rate hikes in FY27 are plausible, though the timing and scale would depend on incoming data.
Tintoi Cotton Season Opens at ₹2,100
Friday 11th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
A Spectacular Start to the Cotton Season! Cotton Sold at ₹2,100 per Maund in Tintoi
The new cotton season has kicked off at the Tintoi sub-yard in Modasa. Trading began with the arrival of the first batch of cotton harvested after the monsoon. On the opening day, the initial bid in the public auction started at ₹1,111 per maund, while the highest bid of ₹2,100 per maund was ultimately placed by the traders from 'Gurukripa'. Farmers were delighted to secure high prices for their cotton on the very first day of the new season. Traders also displayed enthusiasm regarding the procurement of the new cotton during the auction. Farmers in the region have sown cotton across an area exceeding 20,000 hectares this season. Consequently, cotton arrivals at the Tintoi sub-yard are expected to increase in the coming days. On the occasion of the season's first purchase, Pankajbhai Patel, Chairman of the Modasa Yard, congratulated the staff, traders, and farmers of the Tintoi sub-yard and extended his best wishes for a successful trading season.
Barwani Cotton Targets Premium Quality Identity
Friday 11th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Barwani Cotton to Gain Quality Recognition; Incentives of Up to ₹500 Per Bale
The entire process—from farm to ginning—will be aligned with quality standards; preparations are underway to establish a cotton testing lab in the district. Efforts are being made to secure a distinct identity for Barwani district's cotton in both domestic and international markets by aligning the entire process—from the farm to the ginning stage—with quality standards. An initiative is underway to set up a cotton testing lab in the district under the 'Kasturi Cotton India' mission. This will enable scientific testing of cotton quality at the local level. Provisions have also been made to install post-cleaning machines in ginning units to enhance cotton quality. Furthermore, it has been announced that an incentive of up to ₹500 per bale will be provided for cotton promoted under the 'Kasturi Cotton' brand. This move aims to encourage farmers and ginning units to maintain high quality. In this regard, Lalit Kumar Gupta, CMD of the Cotton Corporation of India (CCI), held a discussion on Thursday via video conferencing with the District Collector, district officials, and traders associated with the ginning and spinning industries. The meeting focused on quality, cleanliness, and traceability to establish a unique identity for Barwani cotton in national and international markets. Under the mission, farmers will be sensitized to the importance of maintaining cleanliness right from the cotton-picking stage. Special emphasis will be placed on preventing the contamination of cotton with soil, leaves, debris, or other foreign materials. Subsequently, measures will be taken to ensure adherence to quality standards during storage, transportation, and ginning. Collector Jayati Singh stated that awareness regarding this initiative is being raised across the district. Necessary steps will soon be taken to advance this process, improve cotton quality, and secure better market access for Barwani cotton.
Cotton Yarn Prices Surge 60%
Friday 11th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Cotton Yarn Prices Soar 60%: Indian Textile Industry Faces Growing Cost Crisis
India’s textile industry is facing growing cost pressure as cotton yarn prices have surged sharply, limiting the expected benefits from the country’s expanding free trade agreements (FTAs).
According to the Apparel Export Promotion Council (AEPC), cotton yarn prices have risen nearly 60% to around ₹400 per kg from ₹250 per kg in early 2026. Apparel exporters have urged the government to consider measures to regulate yarn exports and contain domestic prices. Industry representatives say rising yarn prices and limited cotton availability are creating a serious challenge for the textile sector. Tiruppur Exporters’ Association Secretary General Kumar Duraiswamy said India is facing a shortage of around 10 lakh bales and called for extending duty-free cotton imports and increasing domestic production. Government data shows cotton production fell to 290.91 lakh bales in 2025-26, compared with 352.48 lakh bales in 2020-21. Industry players say lower production and international market conditions are contributing to higher yarn prices. Rising yarn costs are squeezing margins across the textile value chain. Primus Partners’ Kanishk Maheshwari said Tiruppur exporters estimate production costs have increased by up to 15%. High input costs are also raising fabric and garment costs, while exporters face difficulties passing the entire increase to global buyers. Industry experts believe FTAs can provide valuable market access, but high input costs could reduce India’s competitiveness. They called for predictable raw-material supplies, greater flexibility on cotton imports, improved productivity, technology adoption and supply-chain efficiency. Experts stressed that India must strengthen the entire textile value chain—from cotton and yarn to finished garments—to convert FTA opportunities into sustained export growth.
US cotton exports sharply dip but Upland shipments on rise
Friday 11th Sep 2026, (Source: www.fibre2fashion.com)
Insights: US Upland cotton net sales for 2026-27 fell about 71 per cent week on week to 27,500 RB, with India and Vietnam the largest buyers at 10,800 RB each. Upland shipments rose about 4.7 per cent to 189,500 RB, led by Vietnam, India, Pakistan, Mexico and Indonesia. Pima sales dropped about 14 per cent to 1,800 RB, while shipments fell about 47 per cent to 4,600 RB.
US cotton export sales weakened sharply during the week ended August 27, 2026, with net sales of both Upland and Pima cotton declining from the previous week. Upland export shipments, however, increased, supported by strong deliveries to Vietnam and India, according to the latest weekly export sales data.
Net sales of Upland cotton for the 2026-27 marketing year totalled 27,500 RB (running bales, each weighing 226.8 kg), down about 71 per cent from 95,700 RB in the previous week.
India and Vietnam were the largest buyers, with 10,800 RB each. Vietnam’s purchases included 4,000 RB switched from South Korea and reductions of 300 RB. Bangladesh followed with 5,200 RB, including reductions of 100 RB, while Peru bought 2,000 RB. China accounted for 1,700 RB switched from Hong Kong. The overall sales figure was partly offset by reductions of 3,800 RB for South Korea and 1,700 RB for Hong Kong.
Upland export shipments increased by about 4.7 per cent to 189,500 RB from 181,000 RB in the preceding week. Vietnam remained the largest destination, receiving 77,300 RB, followed by India with 22,200 RB, Pakistan with 17,800 RB, Mexico with 14,700 RB and Indonesia with 9,700 RB.
Net sales of Pima cotton for 2026-27 stood at 1,800 RB, down about 14 per cent from 2,100 RB in the previous week. India remained the largest buyer with 1,100 RB, followed by Thailand with 500 RB, Pakistan with 200 RB and Japan with 100 RB.
Pima export shipments fell sharply to 4,600 RB from 8,600 RB a week earlier, representing a decline of about 47 per cent. Vietnam was the leading destination with 1,500 RB, followed by India with 1,200 RB, Costa Rica with 900 RB, Turkiye with 400 RB and Pakistan with 300 RB.
The figures indicated a substantial slowdown in fresh US Upland cotton buying after stronger sales in the preceding week. Physical shipments remained comparatively resilient, with Upland exports increasing week on week and Vietnam and India continuing to account for sizeable volumes. Pima trade remained weaker, with both sales and export shipments declining from the previous week. The decline in US cotton export sales came despite firmer ICE cotton futures, highlighting a disconnect between physical demand and futures sentiment. ICE prices were supported by concerns over dry weather in key producing regions and hopes of stronger Chinese buying, but these bullish factors had yet to translate into substantial fresh export orders. Higher prices may also have encouraged some importers to delay purchases and wait for clearer demand signals.
Textile Exchange unveils first speakers for 2026 conference
Friday 11th Sep 2026, (Source: www.fibre2fashion.com)
Insights: Textile Exchange has announced the first speakers for its 2026 conference, themed 'The Implementation Era'. The line-up spans fashion, textiles, apparel, sourcing, sustainability, circularity and forest conservation, with speakers set to explore what a system-wide resilient future could look like, and the actions needed to move the industry towards implementation.
Textile Exchange has announced the first group of speakers for the 2026 Textile Exchange Conference, which will bring together experts from across the fashion, textile and apparel industry under this year’s theme, ‘The Implementation Era’. The conference will feature perspectives ranging from forest conservation and the circular economy to materials, sourcing and sustainability. Speakers are expected to explore what a system-wide resilient future could look like and discuss the actions needed to move the industry towards that goal. The first speakers announced include Ahmed Zaidi of Hyran Technologies; Bella Webb of Vogue Business; Brenna Atnikov; Brittany Dickinson of Goodwill Industries International; Christine Goulay of Sustainabelle Advisory Services; Heike Blank of CMS Germany; Jasmin Malik Chua of Sourcing Journal; Jennie Granström of H&M; Kate Gellatly of SB+CO; Lindsay Humphreys of The Material Collective; Lisa Griplas of Woolmark; Marcela Navarro Parra; Nicole Rycroft of Canopy Planet; Priyanka Khanna of Fashion for Good; and Vaijayanti Parag Ghokale of Ambuja Foundation Maharashtra.
According to the conference announcement, the speakers represent a diverse cross-section of the industry and will bring varied expertise and perspectives to discussions centred on implementation and building a more resilient system. The 2026 Textile Exchange Conference brings together experts from across the fashion, textile and apparel industry for three days of collective learning focused on the ways that we produce, choose and reuse materials.
