Cotlook Index: 04-08-2026
93.70 (+0.90)
ICE cotton retreats on profit booking, weaker crude oil
Wed. 5th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton futures edged lower as profit-booking followed a strong rally that had lifted prices to a two-month high. Weaker crude oil prices also weighed on sentiment. However, tightening ICE certified stocks, hot and dry weather in the US, below-average monsoon forecasts in India, and expected lower output in Brazil continued to underpin the market, keeping the broader trend bullish.
ICE cotton futures retreated slightly yesterday as profit-booking weighed on the market following a strong rally that had lifted US cotton prices to a two-month high. Cotton speculators reduced their net long positions, increasing short-term selling pressure as traders locked in recent gains. Meanwhile, declining crude oil prices also dampened market sentiment amid renewed hopes of easing tensions in the Gulf. The most active December 2026 contract settled at 82.46 cents down 0.11 cent. The contract had recorded a high level of 82.60 cents per pounds in the previous week. Cotton speculators have reduced their net long positions by around 2,000 contracts. Market analysts said that the recent weakness was mainly the result of profit-taking rather than a change in market fundamentals, noting that hot and dry weather in West Texas continues to provide underlying support. Crude oil prices fell another 5 per cent, reaching a three-month low, as optimism grew over easing Middle East tensions and potential improvements in oil supply. Lower energy prices reduce polyester production costs, making synthetic fibres more competitive with cotton. CBOT wheat futures also eased after the previous session's sharp rally, as traders assessed the impact of Black Sea tensions on global grain exports. Despite the weaker close, downside remained limited because weather-related production concerns continue to support the market. Weather remains the biggest bullish factor, with hot and dry conditions across West Texas continuing to threaten yield potential during the critical boll development stage. In India, forecasts call for below-average monsoon rainfall through August, raising concerns about crop development and potential yield losses in key cotton-growing regions. In Brazil, cotton production is projected to decline by 1.5 per cent in 2027 despite a 4.4 per cent increase in planted area, as El Niño-induced dry weather is expected to intensify through September and reduce crop yields. ICE Certified Stocks declined further to 86,371 bales from 87,606 bales, reinforcing the tightening supply of nearby deliverable cotton. Technically, December futures remained close to their recent highs despite the minor pullback, suggesting the market is undergoing a healthy consolidation following a strong three-session rally rather than signalling a trend reversal. Immediate support is seen at 82.00 cents, followed by 80.88 cents, while resistance remains at 82.96 cents. A sustained move above this level could pave the way for further upside. Overall, cotton witnessed a modest pullback as traders booked profits and weaker crude oil prices weighed on broader commodity markets. However, tightening ICE certified stocks, deteriorating US crop conditions, persistent weather risks across the US, India and Brazil, and ongoing supply concerns continue to provide strong underlying support, keeping the broader market trend bullish. This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 82.60 cents per pound (up 0.14 cent), cash cotton at 77.38 cents (down 0.22 cent), the October 2026 at 81.13 cents (down 0.22 cent), the March 2027 contract at 84.13 cents (up 0.08 cent), the May 2027 contract at 85.25 cents (up 0.06 cent), and the July 2027 contract at 84.87 cents (up 0.01 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India opens handloom technology centre at IIT Delhi
Wed. 5th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India has opened a Centre of Excellence for Handloom Technology at IIT Delhi to link handloom heritage with research, digital tools and sustainability. Five initiatives span productivity monitoring, e-learning, startup incubation, Gen Z design and recycled defence textiles. The centre will research loom modernisation, AI and ergonomics, and train at least 1,000 weavers and professionals over
India's Ministry of Textiles has inaugurated the Centre of Excellence for Handloom Technology (CoE-HT) at IIT Delhi, positioning the facility as a technology, innovation and research platform for modernising the country's handloom sector. The Minister of Textiles Giriraj Singh addressed the gathering, saying the centre reflects the Indian government's vision of combining India's weaving heritage with advanced technologies to build a future-ready handloom ecosystem, with innovation, digital technologies, sustainability and entrepreneurship seen as important for improving productivity, enhancing market access and supporting better livelihoods for handloom weavers. Neelam Shami Rao, Secretary, Ministry of Textiles, underlined the need for stronger collaboration between academia, industry and government institutions to develop practical technological solutions for the handloom sector.
· Handloom 4.0 Mobile App: Designed to enable digital monitoring of loom productivity, quality, maintenance and sustainability.
· Handloom e-Vidya: A digital learning and knowledge platform for capacity building across the handloom ecosystem.
· HandloomX: An accelerator and incubation platform to support startups and innovators working across the Ministry's 5F value chain.
· Kalagriha Handloom Studio (GenZ Design Studio): A platform using digital technologies to connect contemporary consumers with authentic handloom products through customisation and visualisation.
· Threads of Valour: A sustainability initiative to transform recycled defence textiles into premium handloom fabrics through scientific recycling and skilled craftsmanship.
The CoE-HT will undertake research in loom modernisation, ergonomics, artificial intelligence, sustainability, functional innovation and digital technologies. It will also develop a national repository of handloom knowledge, create AI-enabled tools, facilitate technology transfer, support startups and train at least 1,000 weavers, faculty members and handloom professionals over the next five years, the Ministry of Textiles said in a press release.
The centre brings together academia, industry, startups and handloom institutions, and is expected to strengthen the handloom ecosystem while supporting the Ministry of Textiles' stated aim of preserving India's handloom heritage and equipping the sector with advanced technologies, research capabilities and innovation-led solutions.
Brazil cotton prices firm on strong demand despite limited liquidity
Wed. 5th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Brazil's cotton prices remained firm in late July as strong spot demand, higher global prices and firm offers from sellers supported the market despite limited liquidity. The CEPEA/ESALQ Index rose 1.96 per cent, while the 2025-26 harvest reached 17.14 per cent. Cotton exports hit a record 3.35 million tonnes for the partial season, underscoring strong overseas demand.
Brazil's cotton prices remained firm during the second half of July, supported by strong spot demand, higher international prices and firm offers from sellers, although market liquidity remained limited, according to the University of São Paulo's Center for Advanced Studies on Applied Economics (CEPEA). The CEPEA/ESALQ Index (payment in eight days) rose 1.96 per cent between June 30 and July 31, closing at BRL 4.2039 per pound on July 31. Buyers remained active to meet immediate requirements and replenish inventories, while sellers held firm on prices, particularly for higher-quality cotton. As a result, some buyers became more flexible on pricing, lending additional support to the market. Meanwhile, Brazil's 2025-26 cotton harvest reached 17.14 per cent of the planted area by July 23, according to the Brazilian Cotton Growers Association (Abrapa). Harvesting advanced to 12 per cent in Mato Grosso and 22.96 per cent in Bahia. Brazil also maintained a strong export performance. Cotton exports during the partial 2025-26 season (August 2025 through the fourth week of July) totalled 3.35 million tonnes, 18 per cent higher than the entire previous season and the highest volume in Secex's historical series. In July alone (18 producing days), exports reached 127,650 tonnes, down 41.2 per cent from June but 0.3 per cent higher than in July 2025. The daily average stood at 7,090 tonnes, up 28.2 per cent from 5,530 tonnes in the corresponding period last year.
UK FTA could be $1-bn opportunity for Indian textile industry: Ind-Ra
Wed. 5th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights : Ind-Ra believes the UK-India FTA offers a strong medium-to-long-term growth opportunity for India's textile industry, opening up almost $1 billion in incremental exports. Though this will enhance competitiveness and market share in the UK, the extent of the benefits will depend on how effectively Indian firms expand capacity, manage costs, meet compliance requirements and maintain financial discipline.
India Ratings and Research (Ind-Ra) believes the UK-India Free Trade Agreement (FTA) offers a strong medium-to-long-term growth opportunity for India's textile industry, potentially opening up almost $1 billion in incremental export opportunities. Though this will enhance export competitiveness and market share in the United Kingdom, the extent of the benefits will depend on how effectively Indian textile companies expand capacity, manage costs, meet compliance requirements and maintain financial discipline, Ind-Ra said in a note. It views the FTA as credit positive for textile exporters. While the agreement enhances export opportunities, the benefits will accrue gradually and depend on factors like capacity expansion, buyer approvals, working capital management and regulatory compliance. “Large, integrated textile companies are better positioned to capitalise on these opportunities due to their scale, established customer relationships, and stronger financial resources. In contrast, small players may face challenges if expansion is funded through excessive debt, which could pressure leverage and liquidity,” said Rohit Sadaka, director, corporate ratings at the company. The United Kingdom is India's third-largest textile export destination, accounting for nearly 6.1 per cent of textile exports. At the same time, imports of UK-origin textile products into India remain negligible, representing less than 1 per cent of domestic consumption. India's share of the UK textile import market is only about 6.9 per cent, indicating significant headroom for growth. As a result, the FTA should benefit Indian exporters more than UK suppliers, supporting export expansion without materially impacting domestic manufacturers, Ind-Ra remarked. One of the most attractive aspects of the agreement is the opportunity to increase market share in apparel and home textiles, it noted.
The removal of the previous 12-per cent tariff disadvantage significantly improves the landed cost competitiveness of Indian products in the UK market. This could help Indian exporters gain share from Chinese suppliers over time. However, competing with Bangladesh may prove more challenging due to Bangladesh's scale advantages and lower production costs. Even a 3-per cent rise in India’s share of the UK textile import market from the 6.9 per cent now to around 10 per cent could translate into an incremental export opportunity of around $900 million for Indian players, Ind-Ra concluded. Although the FTA enhances competitiveness, profitability gains are unlikely to be immediate. UK buyers may negotiate lower prices and absorb part of the tariff benefits, limiting near-term margin expansion. Over time, higher export volumes can improve operating leverage and support profitability. However, elevated fuel, power, freight and shipping costs may offset some of these gains in the short term, Ind-Ra added.
Bangladesh's BGMEA, BTMA join forces for $100 bn garment export target
Tue. 4th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Bangladesh trade bodies BGMEA and BTMA have signed an MoU to jointly organise the Bangladesh International Textile and Apparel Machinery Exhibition in Dhaka. The aim is to attract investment and achieve $100 billion in garment export earnings. The exhibition will showcase AI-based manufacturing technologies, automation solutions, sustainable production practices and emerging global fashion trends.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Textile Mills Association (BTMA) have signed a memorandum of understanding (MoU) to jointly organise the Bangladesh International Textile and Apparel Machinery Exhibition (BITMA) in Dhaka with the support of a reputed international exhibition management company.
The aim is to attract investment and achieve $100 billion in garment export earnings.
The exhibition will showcase state-of-the-art textile and apparel machinery, artificial intelligence (AI)-based manufacturing technologies, automation solutions, sustainable production practices and emerging global fashion trends. A 10-member joint organising committee, comprising five representatives from each organisation, will oversee the strategic planning, management and financial transparency of the exhibition, according to domestic media reports. The chairmanship of the committee will be rotated every year, with BTMA chairing the inaugural edition and BGMEA serving as co-chair. The exhibition's net profit will be shared on a mutually-agreed basis. At the MoU signing ceremony, BGMEA President Mahmud Hasan Khan proposed encouraging international machinery suppliers to manufacture textile machinery spare parts in Bangladesh instead of only exporting equipment, as high import duties on spare parts substantially raise production costs.
Govt Targets Higher Cotton Yield
Wed. 5th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Government Shifts Cotton Strategy to Focus on Productivity; Targets 755 kg/Hectare Yield by FY31
New Delhi: The central government has shifted the focus of its cotton development strategy from crop protection to enhancing productivity. The objective is to boost domestic cotton production and reduce India's growing reliance on imports. Under the ₹5,659 crore 'Cotton Productivity Mission' (Kapas Kranti), the government aims to increase the average cotton yield from 428 kg per hectare in FY26 to 755 kg per hectare by FY31, targeting an annual increase of at least 50 kg per hectare.
To be implemented jointly by the Ministry of Textiles and the Ministry of Agriculture and Farmers Welfare, the mission will prioritize high-density planting, high-yielding seed varieties, scientific farming practices, and farmer training. Officials noted that while significant efforts have been made in recent years to protect cotton crops from pests like the pink bollworm and whitefly, the next phase will focus on improving cultivation productivity. Although India has the largest area under cotton cultivation globally, its average yield remains significantly lower than the global average of 833 kg per hectare. Government data indicates that cotton yields have not seen substantial growth in recent years, highlighting the clear need for measures focused on productivity. This renewed emphasis comes at a time when domestic cotton production is steadily declining and imports are rising. Cotton production has dropped from 33.66 million bales in FY23 to an estimated 29.1 million bales in FY26, whereas annual domestic consumption is projected at 32.8 million bales. This has resulted in a supply deficit that is being met through imports. To bridge this gap, the government aims to increase cotton production to 49.8 million bales by FY31, while domestic consumption is projected to reach 45 million bales. This mission is expected to benefit approximately 3.2 million cotton farmers across the country's major cotton-producing states. Industry experts believe that improving cotton productivity is essential to strengthening India's textile sector and achieving the government's target of $100 billion in textile exports by 2030. Higher yields, superior quality cotton, competitive raw material prices, and reduced contamination levels will enhance India's competitiveness in global markets. Agreements with the United Kingdom and ongoing negotiations with the European Union are creating new trade opportunities; in this context, increased productivity will play a pivotal role in expanding India's share of the global cotton and textile trade.
RBI keeps repo rate unchanged at 5.25%, retains neutral stance
Wed. 5th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights : The RBI's Monetary Policy Committee kept the repo rate unchanged at 5.25 per cent and retained its neutral stance, citing persistent inflation risks and global uncertainty. It projected 6.7 per cent GDP growth and 5.0 per cent CPI inflation for 2026-27, while highlighting food and fuel prices, monsoon conditions, geopolitics and global trade as key risks to the outlook.
The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25 per cent while retaining its neutral policy stance, citing persistent inflation risks, global uncertainties and the need for greater clarity on the evolving growth-inflation outlook. Consequently, the standing deposit facility (SDF) rate remains at 5.00 per cent, while the marginal standing facility (MSF) rate and the Bank Rate continue at 5.50 per cent. The MPC projected real GDP growth at 6.7 per cent for 2026-27, with quarterly growth estimated at 7.0 per cent in Q1, 6.4 per cent in Q2, 6.5 per cent in Q3 and 6.8 per cent in Q4. Growth for the first quarter of 2027-28 is projected at 7.3 per cent, with risks assessed as evenly balanced. Consumer price inflation is projected at 5.0 per cent for 2026-27, with 4.7 per cent in Q2, 5.9 per cent in Q3 and 5.5 per cent in Q4. The MPC said headline inflation has moved above the target mainly because of food and fuel prices, with little evidence of broader price pressures. The committee noted that India's economy remains resilient despite global headwinds, supported by robust domestic demand, sustained expansion in manufacturing and services, healthy credit growth, infrastructure spending and a rebound in merchandise exports alongside strong services exports. However, it cautioned that the outlook remains uncertain due to geopolitical tensions, volatile energy prices, global trade policy shifts, supply chain pressures, the south-west monsoon and El Niño conditions. The central bank said it would await greater clarity on inflation dynamics before considering any policy action, including possible recalibration of interest rates. The MPC reaffirmed its commitment to aligning inflation with the target while supporting growth and said it would remain vigilant in responding to evolving macroeconomic developments. The next MPC meeting is scheduled for October 5-7, 2026.
Turkiye's producer prices rise 27.8% YoY in July; textiles up 22.6%
Wed. 5th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Turkiye's Domestic Producer Price Index (D-PPI) rose 27.83 per cent year on year and 1.52 per cent month on month in July 2026, driven by manufacturing and energy costs. Manufacturing producer prices increased 28.96 per cent annually, while textile producer prices climbed 22.61 per cent year on year and 2.13 per cent from June, reflecting continued cost pressures.
Turkiye's Domestic Producer Price Index (D-PPI) rose 27.83 per cent year on year (YoY) and 1.52 per cent month on month (MoM) in July 2026, led by higher manufacturing and energy costs, according to the Turkish Statistical Institute (TUIK). Manufacturing producer prices, which are closely watched by the textile and apparel industry, increased 28.96 per cent from a year earlier and 1.06 per cent from June. Producer prices in the textile sector rose 22.61 per cent YoY and 2.13 per cent MoM. Among the four main industrial sectors, annual producer prices increased 41.81 per cent for mining and quarrying, 28.96 per cent for manufacturing, 11.69 per cent for electricity, gas, steam and air conditioning, and 28.85 per cent for water supply.
On a monthly basis, producer prices declined 4.22 per cent in mining and quarrying but increased 1.06 per cent in manufacturing, 9.65 per cent in electricity, gas, steam and air conditioning, and 1.49 per cent in water supply. Among the main industrial groups, non-durable consumer goods recorded the highest annual producer price increase of 32.46 per cent, followed by intermediate goods at 26.79 per cent, energy at 26.62 per cent, durable consumer goods at 26.57 per cent and capital goods at 21.28 per cent. On a monthly basis, prices increased 4.83 per cent for energy, 1.33 per cent for non-durable consumer goods, 1.09 per cent for capital goods, 0.81 per cent for intermediate goods and 0.40 per cent for durable consumer goods. Since December 2025, Turkiye's D-PPI has risen 17.86 per cent, while the 12-month moving average stood 27.54 per cent higher in July.
