Cotlook Index: 06-07-2026
85.80 (Unch)
ICE cotton advances on US weather concerns, grain market rally
Tue. 7th July 2026 (Source: www.fibre2fashion.com/news)
Insights: ICE cotton futures rose over 1.5 per cent, supported by US weather concerns and a rally in CBOT grain markets, marking the fourth gain in five sessions.
Limited rainfall in US cotton areas and delayed crop development in India underpinned sentiment, while USDA lowered the US cotton crop's good-to-excellent rating.
Trading volumes remained light despite the price rally.
ICE cotton futures gained yesterday due to fresh weather concerns in the US and stronger grain markets. US cotton has recorded four higher closes in the last five trading sessions. Cotton-growing areas in the US witnessed scattered rainfall, but it was not enough to significantly improve soil moisture.
The most active December 2026 contract settled at 78.38 cents, up 1.18 cents or 1.53 per cent. The contract reached an intraday high of 78.65 cents per pound in the afternoon before the last trade at 78.57 cents, with buying supported by a strong rally in agricultural commodities. Other contracts finished with gains ranging from 48 to 138 points.
The main driver behind the advance was short-term weather concerns in the US, combined with sharp gains in CBOT grain futures, while cotton-specific news remained limited.
Market analysts said cotton prices were supported by weather concerns and strength in CBOT grains. Scattered rainfall occurred across parts of the southern US over the weekend, but totals were generally light and insufficient to significantly improve soil moisture. Last week, a strong heat dome developed across the US Midwest, producing record-high temperatures and increasing concerns that prolonged hot and dry weather could stress crops.
The Indian monsoon continues to advance, although crop development remains behind normal because earlier rainfall was insufficient. India experienced one of its driest Junes since 1901, with rainfall around 11 per cent below normal, delaying the planting of cotton and other summer crops.
The latest USDA Crop Progress Report showed that 46 per cent of the US cotton crop was rated Good-to-Excellent, down from 48 per cent the previous week and 52 per cent a year ago. Cotton squaring reached 49 per cent, compared with 37 per cent last week, 47 per cent a year ago, and the five-year average of 47 per cent. Cotton setting bolls reached 14 per cent, compared with 9 per cent the previous week, 13 per cent a year ago, and matching the five-year average of 14 per cent.
CBOT grain markets posted strong gains, with soybeans up 3.9 per cent, corn up 3.7 per cent, and wheat up 2.4 per cent, as traders reacted to Midwest heat and improving export demand.
International crude oil traded near a two-week low after OPEC+ approved another production increase for August, while expectations of higher exports from Kazakhstan and Iraq also pressured prices.
Trading volume totalled 36,901 contracts, improving from 29,623 contracts on Thursday but remaining light compared with most sessions in 2026. The average daily volume last week was 35,038 contracts, the lightest weekly average of the year.
In the July delivery process, it was the eighth notice day, with 56 delivery notices issued, matching the 56 contracts of remaining open interest. The July contract did not trade but remains available through Thursday. Total delivery notices now stand at 617 contracts, all of which could be original notices. ICE-certified cotton stocks remained unchanged at 185,034 bales, holding at the same level since June 26.
Broader financial markets remained supportive, with the Dow Jones Industrial Average reaching new all-time intraday and closing highs, while the S&P 500 and Nasdaq Composite also advanced but remained below their June 2 record closing levels, reflecting a broad risk-on sentiment as investors returned after the US holiday weekend.
This morning (Indian Standard Time), ICE cotton for December 2026 traded at 79.05 cents per pound (up 0.75 cent), cash cotton at 72.72 cents (up 1.38 cents), the July 2026 contract at 73.95 cents (up 1.38 cents), the October 2026 contract at 77.92 cents (up 1.20 cents), the March 2027 contract at 80.52 cents (up 0.80 cent), and the May 2027 contract at 81.38 cents (up 0.74 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India's Jharkhand unveils drafts of industrial, textile policies.
Tue. 7th July 2026 (Source: www.fibre2fashion.com/news)
Insights: India's Jharkhand state has unveiled the draft versions of the Jharkhand Textile, Apparel & Footwear Policy 2026 and the Jharkhand Industrial Investment Promotion Policy 2026, seeking feedback from stakeholders.
The latter aims at aligning with key national initiatives, enabling the state to integrate into global value chains and promote high-value segments like tech textiles and MMF products.
The eastern state of India Jharkhand has recently unveiled the draft versions of the Jharkhand Textile, Apparel & Footwear Policy 2026 and the Jharkhand Industrial Investment Promotion Policy (JIIPP) 2026, seeking feedback from industry participants, policy experts and citizens.
The state government will host a two-day National Stakeholder Consultation Meet in New Delhi on July 8-9 to further refine the proposed frameworks and attract national and global investment interest. A dedicated feedback session on July 9 will be held under the leadership of Jharkhand chief minister Hemant Soren.
The Jharkhand Textile, Apparel and Footwear Policy 2026 aims at leveraging the state’s inherent strengths while aligning with key national initiatives such as PM MITRA Parks, Production-Linked Incentive (PLI) scheme, SAMARTH and the National Technical Textiles Mission, enabling the state to integrate into global value chains and promote high-value segments like technical textiles and man-made fibre-based products, the draft policy document said.
Recognising the labour-intensive nature of the sector, the policy seeks to unlock substantial employment potential, with a target of generating over 20,000 additional jobs and mobilising investments exceeding ₹10 billion (~$100 million).
It also aims at enhancing Jharkhand’s contribution to national textile exports by improving competitiveness, quality standards and innovation.
The state aspires to position itself as a leading textile, apparel and footwear hub in eastern India, driving industrial growth, strengthening livelihoods and contributing to inclusive socio-economic transformation, the draft document noted.
The state shall adopt a cluster-based development model to improve efficiency, reduce costs and enhance competitiveness.
Textile clusters shall be supported with common infrastructure, access to modern technology and shared services including testing, design and marketing.
Existing industrial areas shall be upgraded under a brownfield approach with both physical infrastructure and soft support, ie, skill development, branding and capacity building.
Recognising technical textiles as a high-growth sector, the state shall promote investment in non-woven and specialised textile products that have significant applications in strategic sectors like healthcare, infrastructure and defence.
Weekly Monsoon Tracker: Weak Rainfall Slows Cotton and Soybean Sowing
Tue. 7th July 2026, Jayesh chouhan (Source: www.smartinfoindia.com)
Weekly Monsoon Tracker: Cotton and Soybean Sowing Hit by Weak Rainfall
The slow progress of the monsoon and below-normal rainfall across several parts of the country are impacting the sowing of key Kharif crops, particularly cotton and soybean. According to Ministry of Agriculture data, the acreage for both crops as of July 5 was significantly lower compared to the previous year, raising concerns among both farmers and the market.
Cotton sowing stood at 63.18 lakh hectares as of July 5, approximately 23 percent lower than the 82 lakh hectares recorded during the same period last year. This figure is also below the normal acreage of 76.12 lakh hectares. A weak start to the monsoon and uneven rainfall distribution in major cotton-producing states have hampered the pace of sowing. Farmers in many regions have delayed sowing while waiting for adequate soil moisture, and there are also apprehensions regarding the need for re-sowing in some areas.
The situation for soybean also remains under pressure. Sluggish soybean sowing has been a primary factor in the overall decline in oilseed acreage. A lack of soil moisture—caused by weak rainfall in June across central India's major soybean-producing regions—prevented sowing operations from gaining normal momentum. Industry and trade circles are now closely watching rainfall patterns for the second week of July, as this period is considered crucial for soybean sowing.
The impact of the rainfall deficit extends beyond the fields. As of July 5, the country had received 24 percent less rainfall than normal, and according to the Central Water Commission, water storage levels in major reservoirs remain below normal. This has heightened anxiety among farmers in regions dependent on irrigation.
However, the Meteorological Department has forecast widespread rainfall across several parts of the country between July 6 and July 12. If this forecast holds true, the pace of cotton and soybean sowing could accelerate, potentially making up for some of the shortfall experienced so far.
Tamil Nadu Open-End Spinning Mills Face Pressure from Rising Cotton Waste Prices
Tue. 7th July 2026, Jayesh chouhan (Source: www.smartinfoindia.com)
Tamil Nadu's Open-End Spinning Mills Grapple with Rising Raw Material Prices
Open-end spinning mills in Tamil Nadu are currently under pressure due to the rising cost of raw materials. The industry states that the modernization of mills has driven up the demand for cotton waste (specifically comber noil), keeping prices high and squeezing profit margins.
The Open-End Spinning Mills Association and the Recycle Textile Federation have urged the central government to regulate the export of cotton waste. They note that while the price of cotton waste has dropped by ₹20 per kilogram recently, a further reduction of ₹10 per kilogram is needed to provide relief to industries that utilize yarn made from cotton waste.
According to the industry, most open-end spinning mills in North India have already adopted modern technology, whereas approximately 40 percent of mills in Tamil Nadu still require modernization. While the adoption of new technology has nearly doubled yarn production, it has also led to a sharp rise in the demand for cotton waste.
During May, the price of cotton waste (comber noil) reached ₹140 per kilogram. G. Arulmozhi, President of the Open-End Spinning Mills Association, stated that if mills raise yarn prices to offset these rising costs, it would place an additional financial burden on home textile units and powerloom weavers in Karur, as they are not in a position to absorb higher prices.
Cotton waste is a by-product of textile mills, typically priced at around 65% of the cost of raw cotton. However prices have seen unusual surge due to rising exports of comber noil and spike in domestic demand
Maharashtra: Rain Deficit Forces Cotton Farmers in Rajura to Re-sow Crop.
Tue. 7th July 2026, Jayesh chouhan (Source: www.smartinfoindia.com)
Maharashtra: Cotton Crop Threatened by Lack of Rain in Rajura; Farmers Face Challenge of Re-sowing
Cotton crops in the Rajura taluka of Maharashtra's Chandrapur district have been adversely affected by a lack of timely and adequate rainfall. Farmers had sown cotton on a large scale following light showers at the onset of the Mrig Nakshatra; however, the subsequent cessation of rain caused seeds to dry up within the soil in many areas. Farmers now face the crisis of re-sowing, raising concerns right at the start of the Kharif season.
Encouraged by sporadic rainfall over the initial two or three days, farmers had hoped for an early onset of the monsoon. Relying on this expectation, they sowed cotton seeds in the dry soil. However, the absence of rain over the past four to five days prevented the soil from retaining sufficient moisture, causing sprouts to perish in many locations before they could even emerge from the ground.
The situation remains critical in several villages across Rajura taluka, including Govari, Sasti, Povni, Sakhri, Chincholi, Kadholi, Manauli, Babapur, Charli, Nirli, Ghidshi, Mathra, Goyegaon, and Antargaon. Farmers state that despite incurring significant expenses on expensive seeds, fertilizers, and land preparation, the lack of rain has dashed their hopes.
The erratic weather pattern has further complicated farming plans. Farmers who had cultivated their land using loans or credit must now arrange additional funds for re-sowing, a situation likely to exacerbate their financial hardships.
Taluka Agriculture Officer Vinayak Payghan has advised farmers against taking the risk of sowing based solely on sporadic rainfall. According to him, sowing should only be undertaken once there has been at least 100 mm of rainfall and the soil holds adequate moisture.
Farmers explain that they had sown cotton anticipating good rainfall during the Mrig Nakshatra, but the absence of rain at this crucial juncture caused the sprouts to wither underground. This has resulted in severe crop damage, leaving many farmers with no choice but to re-sow.
New Zealand sees stronger India demand ahead of FTA rollout.
Tue. 7th July 2026, Jayesh chouhan (Source: www.smartinfoindia.com)
Insights: New Zealand exporters report stronger India demand before the FTA, with engagement extending to wool, forestry, chip, and pulp.
Indian wool delegations sought premium fibres, processing technology, and advisory expertise, signalling textile sourcing interest.
The FTA is before Parliament and expected later in 2026; 57 per cent of New Zealand exports to India will be tariff-free from day one.
New Zealand exporters are recording stronger demand in India before the New Zealand-India Free Trade Agreement (FTA) enters into force, a development relevant to wool buyers and textile supply chains tracking premium fibres, processing technology and advisory services linked to New Zealand.
Todd McClay, Trade Minister of New Zealand said: "Export volumes are up because businesses and customers can see the quality of what New Zealand has to offer."
He said the FTA has been signed, is before Parliament and is expected to enter into force later in 2026. On entry, 57 per cent of New Zealand exports to India will be tariff-free from day one, with further benefits phased in over time.
Engagement is also extending to forestry and wool, according to a statement released today on the official site of the government of New Zealand.
Matariki Forests sent its first shipment of logs from Bluff to India since 2020 in June, chip and pulp exporters reported strong momentum, and New Zealand recently hosted Indian wool delegations seeking access to premium fibres as well as processing, technology and advisory expertise.
For wool suppliers, importers and sourcing teams, the next milestone is the agreement's entry into force.
McClay said exporters that built relationships early were positioned to use the FTA when it starts, and that further success stories were expected in the months ahead.
