Cotlook Index: 07-09-2026
96.00 (Unch)
Bangladesh's exports to India rise 7.67% in July-August
Wednesday 9th Sep 2026, (Source: www.fibre2fashion.com)
Insights: Bangladesh's exports to India reached $335.2 million in July-August fiscal 2026-27, up 7.67 per cent year on year, Export Promotion Bureau data showed. Garments, jute and textile items remain central to the India market. Bangladesh's exports to India stood at $1.75 billion in fiscal 2025-26, while its trade deficit with India remains above $12 billion.
Bangladesh’s exports to India increased 7.67 per cent year on year to $335.2 million in July-August of fiscal 2026-27, from $311.3 million in the same period a year earlier, according to Export Promotion Bureau data. The rise keeps India a resilient nearby market for Bangladeshi suppliers despite strained bilateral relations and recent trade restrictions affecting garments, jute, yarn and other product flows. The data showed that the growth in India-bound shipments was the strongest among Bangladesh’s major non-traditional markets. Exports to China and Australia each rose 2.51 per cent, while shipments to Japan slipped 0.30 per cent, according to the same data.
Bangladesh’s trade deficit with India remains above $12 billion. Bangladesh’s exports to India peaked at $1.99 billion in fiscal 2021-22. They later fell 11.63 per cent to $1.57 billion in 2023-24, recovered 12.5 per cent to $1.76 billion in 2024-25, and then edged down 1 per cent to $1.75 billion in 2025-26, according to media reports. Bangladesh’s main exports to India include garments, jute and jute products, leather and leather goods, plastics, yarn and textiles. Garments account for roughly half of export earnings from the Indian market, while jute and jute products contribute about 25 per cent.
ICE cotton steadies ahead of WASDE as crop concerns deepen
Wednesday 9th Sep 2026, (Source: www.fibre2fashion.com)
Insights: ICE cotton futures logged a fifth consecutive lower close, with December 2026 settling at 86.32 cents, down 0.01 cent. Traders were reluctant to take fresh long positions ahead of the USDA WASDE report, while weaker US crop conditions and Chinese reserve buying were bullish factors. US good/excellent cotton rating fell to 34 per cent, as open interest declined for a third session.
ICE cotton futures remained largely steady, with slight ease yesterday. It was the fifth consecutive lower close. Traders were reluctant to take fresh long positions ahead of the USDA’s supply and demand (WASDE) report. However, worsening crop conditions in the US and Chinese reserve buying were bullish factors for the market. The most active December 2026 contract settled at 86.32 cents, down just 0.01 cent. The contract has lost 6.82 cents per pound from its contract high of 93.14 cents per pound. The previous week’s selling pressure has left cotton technically weak, but Tuesday’s very small decline in the December 2026 contract indicates that the market is beginning to stabilise. The key question is whether the USDA WASDE report on Friday, September 11 can provide a fundamental reason for prices to reverse the recent decline. Trading volume was 56,988 contracts, almost unchanged from Friday’s 56,552, but substantially below last week’s average daily volume of 77,344 contracts. The lighter activity reflects the market’s wait-and-see attitude ahead of WASDE rather than strong new directional conviction. Open interest was 378,585 contracts, down 531. This was the third consecutive decline, taking the three-day reduction to 5,145 contracts. However, that decline remains small compared with the 58,000 contracts added during August, suggesting that speculative longs have not yet abandoned their positions aggressively. The market has become increasingly dependent on the upcoming USDA data, as traders need fresh information on US production, domestic use, exports, ending stocks and the global cotton balance sheet. WASDE provides annual forecasts for US and world cotton supply and use, making Friday’s report the principal fundamental event for cotton this week. Market analysts indicated that traders were largely waiting for the upcoming report, with the market remaining trapped within its recent trading range. The absence of a fresh bullish catalyst has prevented cotton from recovering the substantial losses suffered since the contract-high close. US crop condition have deteriorated sharply. In the previous reported week, 39 per cent of the cotton crop was rated good/excellent, compared with 37 per cent a year earlier and 51 per cent for the 5-year average. The latest USDA Crop Progress report for the week ended September 6 shows the good/excellent rating falling further to 34 per cent, a 5-point weekly decline.
Cotton development remains advanced despite the deterioration in crop condition: 96 per cent of the crop had set bolls as of September 6, exactly matching the 5-year average of 96 per cent and compared with 89 per cent the previous week and 96 per cent last year. Bolls opening reached 40 per cent, ahead of the 38 per cent 5-year average and last year’s 38 per cent, versus only 29 per cent the previous week. Cotton harvesting had reached 7 per cent, compared with 7 per cent last year and 6 per cent for the 5-year average.
The crop numbers explain why the market still a bullish fundamental argument despite the recent price collapse has: crop condition is worsening while maturity is advancing. However, until this deterioration translates into a lower production estimate or tighter ending stocks, traders appear unwilling to price the supply concern aggressively.
According to the CFTC, the latest positioning data showed speculators holding a net long position of 101,622 contracts, after the position had increased by approximately 4,472 contracts. This relatively large speculative long position remains an important risk because continued price weakness can encourage additional liquidation.
China remains an important potential bullish factor, particularly through State Reserve buying to replenish stocks after the recent auction programme. However, the market still needs reliable confirmation of meaningful purchases of US cotton before this can become a dependable price-supporting factor.
Crude oil and geopolitical markets remain another outside-market influence. Rising Middle East tensions have kept crude elevated, increasing concerns about global inflation and energy costs. Higher energy prices can raise cotton production and transport costs while also making the Federal Reserve’s inflation task more difficult.
The broader commodity complex has also remained sensitive to geopolitical developments. CBOT wheat has responded to Middle East tensions, while grains and other commodities have shown varying degrees of correlation with crude oil and risk sentiment.
This morning (Indian Standard Time), ICE cotton for December 2026 was trading at 86.72 cents per pound (up 0.40 cent), cash cotton at 78.89 cents (up 0.22 cent), the October 2026 contract at 82.64 cents (up 0.22 cent), the March 2027 contract at 89.23 cents (up 0.52 cent), the May 2027 contract at 90.56 cents (up 0.50 cent), and the July 2027 contract at 89.99 cents (up 0.46 cent). A few contracts remained at their previous closing levels, with no trades recorded so far today.
Bangladesh's inflation falls to 8.26% for third month in row
Wednesday 9th Sep 2026, (Source: www.fibre2fashion.com)
Insights: Bangladesh's headline inflation eased for the third consecutive month in August to 8.26 per cent from 8.32 per cent in July, with food inflation falling to 7.02 per cent. Non-food inflation rose to 9.32 per cent, showing continued price pressure. Inflation has moderated from 9.42 per cent in May but remains above the government's target, while eight-month average inflation stood at 8.79 per cent.
Bangladesh’s headline inflation eased for the third consecutive month in August, falling to 8.26 per cent from 8.32 per cent in July, according to the latest data, although price pressures remained elevated. Food inflation also declined during the month, dropping to 7.02 per cent from 7.16 per cent in July. In contrast, non-food inflation edged up to 9.32 per cent from 9.28 per cent, indicating continued pressure on prices outside the food sector. The August decline follows headline inflation of 9.42 per cent in May and 9.16 per cent in June, showing a gradual moderation in overall price pressures over recent months. Despite the easing trend, inflation remained well above the government’s desired target, continuing to put pressure on household purchasing power and living costs. August headline inflation was also slightly lower than the 8.29 per cent recorded in the same month last year. At that time, food inflation stood at 7.60 per cent, while non-food inflation was 8.90 per cent. The average headline inflation for the first eight months of 2026 stood at around 8.79 per cent, according to the data.
Kukshi Mandi New Cotton Auction Begins
Wednesday 9th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Auction of New Cotton Begins at Kukshi Mandi; 1,269 Quintals Arrive
Highest price reaches ₹8,465 per quintal; SDM and Mandi Secretary inaugurate the event with a traditional ceremony. Kukshi, Dhar. The auction of new cotton commenced on Tuesday at the Kukshi Agricultural Produce Market (Mandi). Sub-Divisional Officer (Revenue) Ashish Ashok Patil and Mandi Secretary Himmat Singh Jamra inaugurated the auction by performing rituals to worship Lord Ganesha and Lord Balarama. During the event, oxen were also worshipped, and farmers arriving with their cotton produce were welcomed with flower garlands. On the first day of the auction, an arrival of 1,269 quintals of new cotton was recorded, transported via 151 vehicles. This included 6 bullock carts and 145 other vehicles. The cotton fetched a highest price of ₹8,465, a minimum price of ₹7,500, and a model price of ₹8,000 per quintal. Cotton traders were also present during the auction proceedings. Shankar Manaji, a farmer from Amlal village, was the first to be welcomed with a tilak (ceremonial mark on the forehead); his cotton received a bid of ₹8,305 per quintal. The commencement of the new cotton auction generated enthusiasm among the farmers present at the market premises. Hundreds of farmers from the region attended the event. The auction was organized at the market yard located opposite 'Heera Palace' within the Kukshi Agricultural Produce Market Committee complex. Notable attendees included ginning operators Mahendra Gupta, Jitendra Soni, Rajendra Patidar, Raju Dugarwal, and Alok Gupta, among others.
Appeal to Sell Produce at the Mandi
Mandi Secretary Himmat Singh Jamra urged farmers to sell their agricultural produce within the market yard itself. He stated that selling at the Mandi ensures farmers receive fair prices and accurate weighing. Additionally, facilities for payment via cash or RTGS are available immediately after the sale.
Textile Industry Faces Cotton Price Volatility
Wednesday 9th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Textile Industry Concerned Over Cotton Price Volatility
Amidst persistent fluctuations in cotton and yarn prices, textile mills and garment units in Tamil Nadu are seeking measures to improve cotton availability.
Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry (CITI), stated that the surge in global demand for cotton yarn is a primary reason for the price volatility. He noted that demand for yarn in the international market has improved compared to recent years. While demand for cotton yarn was sluggish from 2023-24, demand for textile products across the value chain began to rise last December. Demand for yarn from China and Bangladesh has increased, and the domestic garment market is also witnessing a recovery, leading to an improved yarn market. Hosiery yarn exports primarily originate from mills in Gujarat, whereas mills in Tamil Nadu have a smaller share in this segment. Cotton futures prices had once touched 92 cents per pound and currently stand at around 86 cents. According to Chandran, the landed cost of clean cotton has risen by approximately ₹70 over the past year, while yarn prices have increased by about ₹95 per kilogram. Meanwhile, the Tiruppur Exporters and Manufacturers Association has appealed to the central and state governments to ban cotton exports. The association alleged that since January, certain large spinning mills and traders have artificially restricted cotton supplies, driving up yarn prices and placing increased pressure on small and medium enterprises (SMEs).
According to the association, the country's cotton requirement is around 350 lakh bales, whereas domestic production stands at approximately 290 lakh bales. Although the government removed the 11% import duty on cotton and facilitated the import of about 62 lakh bales, prices continue to rise. The association has attributed this to artificial market manipulation and demanded government intervention.
Crackdown on Fake Seeds: Shri Shivraj Singh Chouhan to Hold Nationwide Consultation with Farmer Leaders on September 10
Wednesday 9th Sep 2026, (Source: www.pib.gov.in)
Tougher Seed Law in the Works: Shri Shivraj Singh Chouhan to Hear Farmers’ Voices Before Finalising New Seed Bill No More Compromise on Seed Quality: Centre Plans Tough New Law; Shri Shivraj to Engage Farmer Leaders on September 10 From Kashmir to Kanyakumari, Farmers to Have Their Say on New Seed Law as Shri Shivraj Leads Key Consultation The Government of India is preparing to introduce a new and stringent Seed Act aimed at protecting the country’s farmers from the losses caused by fake and substandard seeds. The proposed legislation is part of the Modi government’s efforts to realise Prime Minister Shri Narendra Modi’s vision of a prosperous and self-reliant farming community. Before finalising the proposed legislation, Union Minister for Agriculture & Farmers Welfare and Rural Development Shri Shivraj Singh Chouhan will hold a high-level consultation with senior leaders of major farmer organisations from across the country on September 10 at 4:00 PM at Krishi Bhawan, New Delhi. The consultation, convened by Shri Shivraj Singh Chouhan, is aimed at incorporating farmers’ ground-level experiences, suggestions and concerns directly into the draft seed legislation. The government intends to build a robust and effective regulatory framework to curb the activities of seed mafias and protect farmers from fraudulent and poor-quality seeds. The proposed new Seed Act is expected to provide for stringent legal action against companies and traders involved in the sale of fake, adulterated or substandard seeds, including heavy penalties and imprisonment. Poor-quality seeds can wipe out months of a farmer’s hard-earned income and years of effort and labour. The government’s stated position is that the new law must ensure the highest standards of seed quality and a transparent, end-to-end traceability system, while also safeguarding farmers’ rights over traditional seeds. The consultation on September 10 will bring farmer representatives together from across the country. Senior leadership of the Bharatiya Kisan Sangh, various factions of the Bharatiya Kisan Union (BKU), All India Kisan Coordination Committee (AIKCC), Kisan Mahapanchayat, Bharatiya Krishak Samaj, Gaon Kisan Unnayan and the Society for Independent Farmers Association (SIFA) will participate in the meeting. Ground-level farmer representatives from several states will also put forward their views before the Union Agriculture Minister. These include representatives of the Karnataka Raitha Sangha, Telangana Raitha Sangha, Maharashtra’s Shetkari Organisation, Gujarat’s Khedut Samaj, the National Kisan Progressive Association from Rajasthan and Bihar, Tamil Nadu’s Vivasayigal Sangam, Jharkhand’s Pragatisheel Krishi Manch, and a farmers’ organisation from Kottayam in Kerala, among others. Shri Shivraj Singh Chouhan has emphasised that, under the leadership and guidance of Prime Minister Shri Narendra Modi, the government is committed to framing policies through dialogue and consensus with farmers. The consultation, being held ahead of the upcoming Parliament session, is expected to mark a significant step towards creating a stronger regulatory framework and protecting Indian agriculture from the persistent threat of fake and substandard seeds.
