Cotlook Index: 06-08-2026
93.50 (0.50)
ICE cotton rises further on high temperatures
Fri. 7th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton futures rose for the fifth time in six sessions, supported by persistent heat and dry conditions in major cotton producing regions, tight certified stocks, strong Chinese reserve demand, and supportive new crop export bookings. The December 2026 contract settled at 83.16 cents, while longer dated contracts reached fresh contract highs, reinforcing the bullish market outlook.
ICE cotton futures continued to rise yesterday, marking the fifth gain in the last six trading sessions. US cotton was supported by higher temperatures in the Northern Hemisphere, which caused concerns over the cotton crop in the US and China. The US weekly export sales report was also considered neutral to slightly supportive for the natural fibre. The most active December 2026 contract settled at 83.16 cents, up 0.14 cent. The contract has gained 363 points in the last six sessions. Other active contracts advanced 12 to 40 points, with cumulative six-session gains ranging from 175 points to 394 points. Both the December 2027 and March 2028 contracts recorded new contract highs, with December 2027 posting a fresh contract high for the fifth consecutive session, highlighting continued confidence in the longer-term cotton outlook. Trading volume declined to 41,320 contracts, down sharply from 64,544 contracts on Wednesday, suggesting buyers became more cautious after the recent advance while still maintaining bullish positions. USDA Weekly Export Sales for the week ended July 30 showed total net sales of 194,106 bales, including 186,197 Upland and 7,909 Pima bales. Analysts described the export report as "neutral to slightly supportive", with old-crop cancellations offset by another strong week of new-crop bookings, confirming that international mills continue securing supplies for the 2026-27 season. China's Zhengzhou Cotton Exchange (ZCE) remained firm, with the lead contract rising in four of the last five sessions and gaining approximately 2.5 per cent, while ICE December has advanced about 4.5 per cent over the past six sessions, showing strength across both major futures markets. China's State Reserve Auction recorded its 14th consecutive 100 per cent sellout, with 8,012 tonnes sold. Total auction sales have now reached 112,241 tonnes over 14 consecutive trading days.
Weather remained the market's dominant fundamental driver. Extreme heat and dry conditions persisted across West Texas, Xinjiang (China) and several other Northern Hemisphere cotton-growing regions, raising concerns about crop stress and production losses during the critical boll development stage. The US National Weather Service continued forecasting above-normal temperatures across much of the US cotton belt, while forecasts for India suggest below-normal August rainfall, increasing uncertainty over yield potential. Meteorologists also continue monitoring the possible development of a La Niña weather pattern, which could further disrupt global crop production later this year. Brazil's July cotton exports reached 154,965.56 tonnes, up 22 per cent year on year, reflecting continued strong export competitiveness. ICE Certified Stocks remained historically tight at 84,632 bales as of August 5, reinforcing the ongoing story of tightening nearby deliverable supplies. Technically, the market maintained its strong uptrend despite lighter volume. The inside-day pattern suggests the market may simply be pausing before its next directional move, although it could also indicate temporary resistance after the recent sharp rally. Overall, cotton posted another higher close as persistent weather concerns, tight ICE certified stocks, strong Chinese reserve demand and continued new-crop export buying outweighed softer trading volume and old-crop export cancellations. The market remains firmly supported by weather-driven supply concerns, with traders now watching whether this consolidation becomes the foundation for another leg higher or develops into a period of sideways trading. This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 83.48 cents per pound (up 0.32 cent), cash cotton at 78.21 cents (up 0.12 cent), the October 2026 at 82.35 cents (up 0.39 cent), the March 2027 contract at 85.23 cents (up 0.34 cent), the May 2027 contract at 86.38 cents (up 0.32 cent), and the July 2027 contract at 86.06 cents (up 0.31 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Is India's Sutlej Textiles poised for a strong FY27 comeback?
Sat. 6th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Sutlej Textiles returned to profitability in Q1 FY27, with total income rising 16.5 per cent YoY to $73.94 million, driven by strong EBITDA growth and higher margins.The recovery was supported by value-added products, operational efficiency and cost discipline.The company will continue focusing on sustainability, innovation and expanding its value-added portfolio despite global uncertainties.
Indian textile manufacturer Sutlej Textiles and Industries Limited appears to be on a stronger footing for fiscal 2027 (FY27), having returned to profitability in the first quarter (Q1) after two challenging years. For the quarter ended June 30, 2026, standalone total income rose 16.5 per cent year on year (YoY) to ₹704 crore ($73.94 million), compared to ₹604 crore in the corresponding period last year.
Standalone earnings before interest, tax, depreciation and amortisation (EBITDA) surged more than ninefold to ₹47 crore, up from ₹5 crore a year earlier, while the EBITDA margin expanded by around 585 basis points to 6.7 per cent.
The company also returned to profitability, with profit before tax (PBT) improving to ₹4 crore from a loss of ₹39 crore in Q1 FY26. Profit after tax (PAT) stood at ₹3 crore, reversing a net loss of ₹26 crore recorded in the same quarter last year.
Commenting on the performance, CS Nopany, executive chairman of Sutlej Textiles and Industries Limited, said the company had entered FY27 on firmer ground after two years of a demanding operating environment. He attributed the recovery to a stronger value-added product mix, operational excellence, customer-centric innovation and disciplined capital allocation, adding that Sutlej would continue focusing on cost discipline, sustainability and innovation while remaining mindful of global uncertainties.
The recovery was driven by higher income, stronger margins and earnings, supported by a greater share of value-added products, operational efficiency and sustainability initiatives. Continued investments in manufacturing excellence, energy efficiency, cost optimisation and customer-centric innovation further strengthened the company's domestic and export business.
Sutlej Textiles in a press release said that it has established a leadership position in dyed yarn and cotton melange yarn, with a spinning capacity exceeding 400,000 spindles. Its diversified portfolio spans value-added yarns, home textiles and green fibre, providing multiple revenue streams and reducing dependence on any single business segment. The company exports to more than 60 countries, including the United States (US), the United Kingdom (UK), Germany, China and Australia, reinforcing its presence across both developed and emerging markets.
Looking ahead, the company plans to deepen its value-added product portfolio while maintaining cost and capital discipline and advancing its sustainability and innovation agenda. Although it remains cautious about geopolitical shifts, changing trade flows and raw material volatility, the company believes its stronger product portfolio and improved financial position leave it well-placed to create long-term value for stakeholders.
Bangladesh devises 5-year strategic plan to revive ailing jute sector
Sat. 6th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: A new five-year strategic plan will revive Bangladesh's jute sector by doubling export earnings by 2031 through more value addition, better productivity, enhanced competitiveness and market diversification. It also aims at raising raw jute production to 11.5-12 million bales and achieving 85-90 per cent self-sufficiency in seed production. The sector's export earnings fell by 29 per cent in five years.
Bangladesh has devised a five-year strategic plan to revive the ailing jute sector by doubling the sector’s export earnings by 2031 through more value addition, improved productivity, enhanced competitiveness and diversification of export markets. The decision follows a nearly 29-per cent drop in export earnings from jute and jute goods over the past five years despite rising domestic production.
The department of jute’s ‘Bangladesh Jute Sector Development Strategy and Action Plan (2026-2031)’ has set a target of raising annual export earnings from jute and jute products to $1.64 billion by 2031 from about $820 million now.
It also aims at raising raw jute production to 11.5-12 million bales, achieving 85-90 per cent self-sufficiency in jute seed production and raising the share of value-added products in total exports from the current 45 per cent to 70 per cent, a domestic media outlet reported citing an unnamed government official.
The weak export performance has been attributed to inadequate value addition, limited market access, lack of product diversification and declining international competitiveness. A strategy paper for the plan recommended expanding the production of geotextiles, biodegradable packaging materials, home furnishing products, composite materials, technical textiles, fashion items and automotive components made from jute. It has also proposed setting up three to four internationally-accredited testing laboratories in the country to reduce exporters' dependence on overseas certification facilities. It further recommends preparing the industry to comply with the European Union's new environmental regulations and expand the use of digital technologies throughout the jute value chain. The strategy paper identifies several structural challenges that have weakened the sector over the years. These include India's anti-dumping duties on Bangladeshi jute products imposed since 2017, smuggling of raw jute across the border, rising production costs, weak links between research and industry, limited product diversification and inadequate quality assurance infrastructure. Around 73 of the country's 266 jute mills are closed now. The department of jute is also operating with a severe manpower shortage. The strategy paper proposes expanding jute and jute products exports to Africa, Southeast Asia, the Middle East, Europe and North America through stronger trade promotion, participation in international fairs, buyer-seller matchmaking and partnerships with global brands.
US cotton export sales weaken on lower old crop bookings: USDA
Fri. 7th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: US cotton export sales weakened in the week ended July 30, with old crop cancellations and lower new crop bookings weighing on the report.
Upland sales fell to a marketing year low, while new crop bookings declined 31.3 per cent week on week. However, continued forward buying from key markets including Vietnam, Turkiye, India and Pakistan provided underlying support to sentiment.
US cotton export sales weakened during the week ended July 30, as current season cancellations and lower new crop bookings weighed on the overall report. According to the USDA Weekly Export Sales Report, net reductions in old crop commitments and slower forward sales marked a softer performance than the previous week. However, analysts noted that forward sales for the 2026 27 marketing year remained at a healthy level, reflecting continued buying interest from key importing markets and offering underlying support to ICE cotton futures.
Net sales of Upland cotton for the 2025 26 marketing year recorded net reductions of 55,900 RB (running bales, each weighing 226.8 kg), compared with net sales of 29,700 RB in the previous week, marking a marketing year low. Fresh purchases by China (4,100 RB), Pakistan (2,200 RB), Nicaragua (900 RB) and Mexico (100 RB) were more than offset by cancellations from Turkiye (33,100 RB), India (9,300 RB), South Korea (4,900 RB), Indonesia (4,200 RB) and Vietnam (4,000 RB).
New crop Upland cotton sales for the 2026 27 marketing year totalled 242,100 RB, down 31.3 per cent from the previous week's exceptionally strong level of 352,400 RB. Vietnam remained the leading buyer with 132,400 RB, followed by Turkiye with 41,600 RB, Honduras with 20,500 RB, India with 18,800 RB and Pakistan with 15,100 RB. Upland cotton export shipments totalled 222,800 RB, down 5 per cent from the previous week and 7 per cent below the prior four-week average. Vietnam remained the largest destination with 88,900 RB, followed by Pakistan (35,500 RB), Turkiye (19,500 RB), India (18,000 RB) and Bangladesh (12,700 RB).
Pima cotton also posted weak current season demand. Net sales for the 2025 26 marketing year recorded net reductions of 400 RB due to cancellations from India. However, new crop bookings improved to 8,300 RB, led by India with 7,200 RB, followed by Thailand (700 RB), Indonesia (200 RB), Japan (100 RB) and Mexico (100 RB). Pima export shipments increased 11 per cent from the previous week to 5,000 RB, with India accounting for 3,800 RB, followed by China (700 RB), Thailand (200 RB), Pakistan (100 RB) and Indonesia (100 RB).
The latest USDA data indicated that while current season demand softened as the 2025-26 marketing year ended, overseas mills continued to secure supplies for the new crop. Continued forward buying, particularly from Vietnam, Turkiye, India and Pakistan, suggested sustained confidence in US cotton availability for the 2026-27 season, providing underlying support to market sentiment despite the weaker week on week performance.
India Cotton Market Recovers in July
Fri. 7th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
India Cotton Market Recover in July as Market Rebounds After June Dip
India's 29 MM Cotton Candy prices showed mixed movement over the last three months. Prices stood at ₹65,700 per candy in May 2026 before declining 5.1% to ₹62,350 in June, reflecting improved supply expectations, cautious buying by spinning mills, and softer market sentiment. The market regained momentum in July, with prices rising 3.7% to ₹64,650 per candy on the back of renewed mill demand and improved buying interest. Despite the recovery, prices remained ₹1,050 per candy below May levels, indicating that the market has not fully recovered from June's correction. Looking ahead, industry participants expect cotton prices to remain broadly stable in the near term. However, domestic cotton arrivals are gradually weakening as the marketing season progresses, while cotton imports are increasing to bridge the supply gap and meet the requirements of the textile industry. Going forward, market direction is likely to depend on the pace of domestic arrivals, monsoon-driven crop prospects, demand from the textile sector, export orders, the volume of cotton imports, and global cotton price trends. Overall, the July rebound suggests that underlying demand remains supportive despite short-term volatility, although higher imports may help moderate any sharp upward price movement.
Telangana Kharif Sowing Picks Up
Fri. 7th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Delayed rains boost Kharif sowing in Telangana, but low water storage raises concerns
Hyderabad: Sowing activity for the Kharif (Vanakalam) season in Telangana has picked up significantly following increased monsoon activity. By August 5, sowing had been completed across 96.74 lakh acres, representing approximately 73 percent of the normal Kharif acreage of 132.38 lakh acres. However, water storage levels in major reservoirs—significantly lower than last year—remain a cause for concern regarding irrigation availability and crop productivity. As of July 22, sowing had covered only 68.43 lakh acres (51.69 percent) of the state's area. The intensification of the monsoon during the second half of July, coupled with heavy rains in Maharashtra, Karnataka, and Chhattisgarh, increased water inflows into the Krishna and Godavari river basins, enabling farmers to accelerate sowing operations. Farmers who had previously deferred sowing due to irrigation uncertainties resumed field operations rapidly following the recent rains. A notable increase has been recorded in the sowing of rain-fed crops, including cotton, maize, sorghum (jowar), pearl millet (bajra), finger millet (ragi), pulses, groundnut, and soybean. Meanwhile, paddy nurseries are being prepared in irrigated areas.
Despite this, water availability remains a concern. As of August 5, major reservoirs in the state held 438.90 TMC (thousand million cubic) feet of water, compared to 725.36 TMC during the same period last year. Although water storage has improved from the 321.24 TMC recorded two weeks ago, the significant deficit compared to the previous year is raising concerns about future irrigation availability. Crop-wise data also presents a mixed picture. Paddy sowing has reached 26.16 lakh acres, against a normal acreage of 65.96 lakh acres. During the same period last year, paddy sowing covered 28.74 lakh acres. In contrast, cotton sowing has reached 46.80 lakh acres—nearly matching the normal acreage of 47.41 lakh acres and exceeding the previous year's 43.56 lakh acres. Meanwhile, pulse sowing has also increased to 5.48 lakh acres compared to the previous year. According to agricultural scientists at Professor Jayashankar Telangana State Agricultural University, many farmers have prioritized alternative crops over paddy this year. However, if there is insufficient rainfall in the coming weeks and reservoir water levels do not rise as expected, the productivity and yield of Kharif crops could be affected.
Nagaur Cotton Sowing Hits 7-Year Low
Fri. 7th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Pink Bollworm and Rising Costs Dim the Shine of ‘White Gold’; Cotton Sowing in Nagaur Hits a Seven-Year Low
Nagaur: Cotton, once considered the preferred cash crop for farmers in Rajasthan’s Nagaur district, is gradually losing its luster. Known as ‘White Gold,’ this crop is proving to be less profitable for farmers. Due to consistently declining yields, rising cultivation costs, the growing menace of the pink bollworm, and the failure to secure expected market prices, farmers are rapidly shifting towards alternative crops. This trend was clearly evident during the Kharif 2026 sowing season. The Agriculture Department had set a target to sow cotton across 62,000 hectares in the district for the Kharif 2026 season; however, by the end of the season, sowing was completed on only 32,150 hectares. This figure represents approximately 52 percent of the set target and marks the lowest cotton acreage recorded in the district over the past seven years. Agricultural experts attribute the decline in soil fertility and productivity to the long-term, continuous cultivation of cotton in Nagaur’s sandy loam soil. They note that cotton is primarily a crop suited for black soil; consequently, continuous cultivation in sandy loam areas has led to a steady drop in production. For this reason, farmers prioritized alternative crops like guar (cluster bean) this year. In the Kharif 2026 season, guar sowing was recorded across 124,250 hectares in the district. According to farmers, the average cotton yield has currently dropped to just 1.5 to 2 quintals per bigha. While the gross income from cultivating cotton on approximately 10 bighas reaches around ₹1.20 lakh, the net profit remains minimal after deducting expenses for seeds, fertilizers, pesticides, irrigation, labor, and other farming costs. Thus, cotton cultivation is no longer as profitable for farmers as it used to be. Data from the past seven years confirms the declining acreage of cotton. Cotton sowing in the district was recorded at 56,143 hectares in 2020, 58,457 hectares in 2021, 74,557 hectares in 2022, 48,500 hectares in 2023, 59,302 hectares in 2024, and 37,250 hectares in 2025; by 2026, it had dropped to just 32,150 hectares—the lowest level in seven years. In the initial years, Bt cotton had largely kept the pink bollworm infestation under control, but the pest has now begun to affect Bt varieties as well. Consequently, farmers' expenditure on pesticides is steadily rising. Although the government has fixed the Minimum Support Price (MSP) for medium-staple cotton at ₹7,710 per quintal for the 2026-27 season, farmers are unable to reap the expected benefits due to low yields and escalating production costs. This is why farmers in Degana and Merta—Nagaur's major cotton-producing regions—are rapidly shifting towards cultivating cluster beans (guar) and other alternative crops. Experts believe that unless effective control over the pink bollworm, cost reductions, and better market prices are ensured, cotton acreage in the district could shrink further in the coming years.
President of India graces 12th National Handloom Day celebrations
Fri. 7th Aug 2026 (Source: www.pib.gov.in)
The President of India, Smt. Droupadi Murmu, today presented the Sant Kabir Handloom Awards and National Handloom Awards 2025 at the Handloom Awards Ceremony organised on the occasion of the 12th National Handloom Day at the Rashtrapati Bhavan Cultural Centre (RBCC), New Delhi. The ceremony celebrated India's rich handloom heritage and recognised the outstanding craftsmanship and contributions of the country's handloom weavers towards preserving and promoting its timeless weaving traditions.
The function was attended by Shri Giriraj Singh, Union Minister of Textiles, Shri Pabitra Margherita, Minister of State for External Affairs & Textiles, Smt. Neelam Shami Rao, Secretary (Textiles) and Dr. M. Beena, Development Commissioner (Handlooms). Also present were Sant Kabir Handloom Awardees and National Handloom Awardees, their family members, members of the Awards Selection Committee, eminent personalities associated with the handloom sector, handloom weavers from across the country, senior Government officials, media representatives and other distinguished guests.
The President of India conferred 3 Sant Kabir Handloom Awards and 19 National Handloom Awards for the year 2025 upon outstanding handloom weavers in recognition of their exceptional craftsmanship, innovation and contribution towards preserving and promoting India's rich handloom traditions.
Addressing the gathering, the President said that handloom has been an integral part of the evolutionary journey of India’s civilization for centuries. It reflects the extraordinary diversity of ournation and has preserved our regional uniqueness. The President emphasised handloom sector fosters employment, women's empowerment, art and culture, and love for nature.
The President said that the appropriate use of new technologies is essential for the sustainable development of this sector. Market access can be made more effective through modern digital solutions.
The President noted that many talented young entrepreneurs, equipped with technology and innovative designs, are entering this sector. She said that there should be proactive hand-holding of the youth through government schemes and institutions so that their enthusiasm and skills can ensure long-term, multifaceted success of this sector. She also underlined the importance of encouraging younger generations to carry forward this invaluable legacy.
Speaking on the occasion, Shri Giriraj Singh, Union Minister of Textiles, reaffirmed the Government's continued commitment to strengthen ing the handloom sector through sustained policy support, technology adoption, design innovation, market promotion, skill development and welfare initiatives. Shri Pabitra Margherita, Minister of State for External Affairs & Textiles, highlighted the importance of innovation, youth participation and expanding global opportunities in strengthening India's handloom sector while preserving its rich traditions.
A major highlight of the ceremony was the release of four commemorative postage stamps on Indian handloom weaves by the President of India. The President also released “Earth. Root. Thread – Aal Dyed Handloom Textiles of Central India”, a publication of the Office of the Development Commissioner for Handlooms, Ministry of Textiles, celebrating India's diverse weaving traditions and documenting excellence in the handloom sector.
An exhibition showcasing award-winning handloom products was organised on the sidelines of the function. Visitors also witnessed live demonstrations of traditional Kani weaving and Wall Hanging weaving, providing a glimpse into the diversity, craftsmanship and artistic excellence of India's handloom traditions.
National Handloom Day is observed every year on 7 August to commemorate the launch of the Swadeshi Movement in 1905, which gave renewed impetus to indigenous industries and India's handloom sector. Since the declaration of 7 August as National Handloom Day in 2015, the occasion has served to recognise the invaluable contribution of the handloom sector to India's rich cultural heritage, livelihood generation and sustainable development.
The 12th National Handloom Day celebrations reaffirmed the Ministry of Textiles' commitment to preserving and promoting India's rich handloom heritage while strengthening the handloom ecosystem through continued support for artisans, innovation, design development and market access. The occasion also celebrated the extraordinary skill, creativity and dedication of the country's handloom weavers, whose craftsmanship continues to enrich India's cultural identity and inspire future generations.
