Cotlook Index: 11-08-2026\
94.45 (-0.50)
ICE cotton recovers as dry US weather reinforces bullish trend
Wed. 12th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton's December 2026 contract settled at 84.39 cents, up 0.53 cent, as tight supply and dry US weather supported nearby months. Open interest rose for a seventh straight session to 346,879, while China's State Reserve Auction saw its 17th consecutive 100 per cent sellout. Traders await USDA's August WASDE report, with Xinjiang heat and US crop conditions keeping concerns in focus.
ICE cotton futures recovered yesterday after brief correction on Monday. The bounce back in US cotton reflected intact bullish trend. Exceptionally dry weather in US’ key producing area and tight supply supported the market. China was another factor for the ICE cotton market. The most active December 2026 contract settled at 84.39 cents up 0.53 cent. The contract recovered almost the entire 54-point decline on Monday. December contract remained 577 points higher over the last three weeks, showing that the recent correction has so far been only a pause within a much larger uptrend. The recovery was led by the front months, October 2026 through July 2027 gained 20 to 53 points. But August 2027 and later contracts declined 27 to 33 points, producing a split board. The strength in nearby contracts suggests that near-term physical supply and demand remain tight, while weakness in deferred months may reflect expectations of a larger new crop or softer demand further forward. Trading volume was 44,312 contracts, slightly below Monday's 46,070 contracts, indicating that the rebound occurred without a major volume surge. Open Interest increased another 3,821 contracts to 346,879, marking the 7th consecutive daily increase. OI has now risen 25,151 contracts in seven sessions, showing continued inflow of money despite Monday's correction.
Recent CFTC positioning suggests the flow is likely a combination of speculative long accumulation and commercial/trade short selling, rather than the rally being driven only by short covering. China's State Reserve Auction recorded its 17th consecutive 100 per cent sellout, with approximately 8,016 tonnes sold today. The 17-day cumulative auction total reached approximately 136,298 tonnes. China has therefore cleared nearly 600,000 bales in only 17 auction days, while US cotton continues to account for roughly half of the purchased volume, providing important support to nearby ICE cotton. Meanwhile, extreme heat returned to major Xinjiang cotton-producing areas during August, bringing production concerns back into focus at a critical stage of crop development. In the US cotton belt, exceptionally dry conditions stretching from eastern Texas through the lower Mississippi Valley have renewed weather-related production concerns. Continued heat and dryness during August could affect boll development and final yield potential. The market is therefore balancing two opposing China factors; reserve auctions are releasing additional cotton into the market, which can increase available supply, but the fact that every auction continues to sell out at 100 per cent demonstrates strong and persistent mill demand. The USDA August supply-demand (WASDE) report is the next major catalyst, with traders positioned ahead of the report. Any meaningful change to the US crop size, yield, exports, ending stocks or Chinese import expectations could produce a significant move. Overall, Tuesday's 53-point recovery confirms that Monday's decline has not yet developed into a bearish reversal. Front-month leadership, seven consecutive sessions of rising Open Interest, 17 straight 100 per cent Chinese reserve-auction sellouts, tight deliverable supplies, deteriorating US crop conditions and renewed heat in Xinjiang and the US cotton belt continue to support the bullish structure. The major immediate catalyst is the USDA August report, while the key technical test remains the 84.40–84.48 cent zone; a sustained breakout above it would bring 85 cent and eventually 87.40 cent back into focus.This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 84.35 cents per pound (down 0.04 cent), cash cotton at 79.34 cents (unchanged), the October 2026 at 83.09 cents (unchanged), the March 2027 contract at 86.20 cents (down 0.04 cent), the May 2027 contract at 87.30 cents (down 0.07 cent), and the July 2027 contract at 86.78 cents (up 0.04 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India's cotton pressing revised upward to 339 lakh bales: CAI
Tue. 11th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Cotton Association of India has raised current-season cotton pressing to 339 lakh bales, 11 per cent above its initial estimate of 305 lakh bales. The latest estimate is 8.5 per cent higher than 2024–25, with increases in Maharashtra, Madhya Pradesh, Karnataka and Tamil Nadu. Imports are projected at 62 lakh bales and closing stocks at 93.59 lakh bales by September 30, 2026.
India’s cotton pressing has been revised up to 33.9 million bales of 170 kg in current season ending on September 30. The Cotton Association of India (CAI) has increased further its estimate in its report of July 2026. The estimate is around 11 per cent higher than its initial estimate of 30.5 million bales issued at the beginning of the season in October 2025. The substantial upward revision marks a reversal from CAI’s initial expectation of lower production during the current season. In its latest estimate, CAI raised the crop size by another 0.2 million bales from its previous projection of 33.7 million bales, following updated inputs from cotton-growing state associations and trade sources. The latest estimate of 33.9 million bales is also 8.5 per cent higher than the 31.24 million bales estimated for the 2024–25 season. The initial estimate of 30.5 million bales had indicated a decline of around 2.4 per cent from the previous season, meaning the production outlook has changed considerably as the season progressed. CAI said the latest revision included increases of 50,000 bales each for Maharashtra, Madhya Pradesh, Karnataka and Tamil Nadu. Lower Rajasthan was revised upwards by 25,000 bales, while Upper Rajasthan was reduced by the same amount, resulting in a net increase of 0.2 million bales in the latest assessment. Despite the higher domestic crop estimate, CAI has also raised its cotton import projection to 6.2 million bales from 6 million bales, compared with 4.1 million bales in the previous season. Around 5.4 million bales had already arrived at Indian ports by July 31.
Domestic cotton consumption is projected at 34.8 million bales, up from 31.9 million bales in 2024–25, while exports are estimated at 1.5 million bales, compared with 1.8 million bales in the previous season. Higher production and imports are expected to lift India's total cotton supply to 45.659 million bales, compared with 39.259 million bales in 2024–25. Consequently, CAI expects closing stocks to rise sharply to 9.359 million bales by September 30, 2026, from 5.559 million bales a year earlier.
Telangana to Open 131 CCI Cotton Centres
Wed. 12th Aug 2026, by yash chouhan (Source: https://www.smartinfoindia.com)
Government to Open 131 CCI Procurement Centers This Season
The state government has decided to open 131 Cotton Corporation of India (CCI) cotton procurement centers during the 2026-27 cotton marketing season. In the previous season, 122 CCI procurement centers were opened in the state. Agriculture Minister Tummala Nageswara Rao held a meeting on Tuesday with officials from the CCI, Agriculture, and Marketing departments to review preparations for cotton procurement this season. He instructed officials to prevent any role for middlemen in the procurement process. The Minister noted that the majority of cotton farmers in the state are small and marginal, and their farming relies primarily on rainfall. According to the Minister, cotton cultivation is estimated to cover approximately 46.33 lakh acres in the state this year, with production likely to reach around 25.85 lakh tonnes. The central government has announced a Minimum Support Price (MSP) of ₹8,667 per quintal for long-staple cotton grown in Telangana and certain other states. This is an increase of ₹557 per quintal compared to the previous year. In addition to CCI procurement centers, 356 ginning mills in the state will also be notified as cotton procurement centers. The Minister directed officials to take the necessary steps to open ginning mills across all categories (L1 to L12) either simultaneously or within a maximum interval of 15 to 30 days. Cotton arrivals in the state are expected to begin in the second fortnight of October. Officials have been instructed to transfer crop booking data to the ‘Cotton Farmer App’ via the NIC and to announce the season's average cotton yield based on weather conditions. Farmers achieving yields higher than the average will also be issued digital yield certificates through Agriculture Extension Officers.
India Buys Record Russian Oil
Tue. 11th Aug 2026, by yash chouhan (Source: https://www.smartinfoindia.com)
India Bought Record Russian Oil in July Amid US Threat of 100% Tariffs
Despite the potential threat of the US imposing tariffs of up to 100 percent on countries purchasing oil from Russia, India imported a record volume of Russian crude oil in July. According to the Centre for Research on Energy and Clean Air (CREA), India purchased Russian crude oil worth approximately €5.5 billion in July, a 2.1 percent increase compared to June. In terms of volume, Russian crude oil imports rose to a record 2.8 million barrels per day (bpd). This accounts for approximately 55.5 percent of India's total crude oil imports, which stood at just over 5 million bpd. India's total purchases of Russian fossil fuels in July amounted to €6.4 billion, with crude oil accounting for 87 percent of the total. The share of Russian crude oil in India's total oil imports has risen sharply since the start of the Ukraine war. In 2021, India's imports from Russia were less than 100,000 bpd. This figure rose to approximately 740,000 bpd in 2022 and around 1.8 million bpd in 2023. Russia became India's largest crude oil supplier in 2023. The primary reason for the rise in imports in July was increased supply at smaller terminals. Imports at the HMEL Mundra terminal rose by 58 percent compared to June, while imports at the Vadinar SMPL terminal increased by 35 percent. Imports via Mumbai also saw a 37 percent increase. Conversely, imports at Paradip fell by 22 percent, while shipments at Jamnagar remained largely stable. According to CREA, the average price of Russian Urals crude oil in July was $60.22 per barrel, which was above the G7 and EU price cap of $44.10 per barrel. Meanwhile, the US Senate has approved a bill imposing sanctions related to Russia and Iran by a vote of 86-11. The proposed legislation could empower President Donald Trump to impose tariffs of up to 100 percent on countries that are major buyers of Russian oil and gas. However, the law has not yet come into effect and requires approval from the US House of Representatives as well.
Kharif Sowing Trails Last Year by 18 Lakh Hectares; Rainfall 11 Percent Below Normal, Reservoirs Also Under Pressure
Tue. 11th Aug 2026, (Source: https://www.eng.ruralvoice.in)
India’s Kharif sowing stood 17.96 lakh hectares below last year as of August 7, with rice accounting for most of the decline, although oilseed acreage increased. Cumulative monsoon rainfall was 11.
India’s Kharif crop sowing remains behind last year’s level amid uneven monsoon performance and weaker reservoir storage. As of August 7, farmers had covered 967.92 lakh hectares under major Kharif crops, down 17.96 lakh hectares, or 1.82% from 985.89 lakh hectares a year earlier. Cumulative rainfall during June 1-August 5 was 11% below normal, while live storage in 166 monitored reservoirs as of August 6 stood 2.87% below normal and was only 73.25% of last year’s level.
Kharif sowing: Rice drags overall coverage
According to the Agriculture Statistics Division, total area under the major Kharif crops stood at 967.92 lakh hectares as on August 7, 2026, compared with 985.89 lakh hectares during the corresponding period last year. The area is also below the normal area of 1,104.46 lakh hectares for the comparable period.
Rice, the largest Kharif crop, accounted for the biggest shortfall. Area under rice stood at 344.78 lakh hectares, down 15.90 lakh hectares (4.41%) from 360.67 lakh hectares last year. The major declines were reported from Madhya Pradesh, Jharkhand, Maharashtra, Karnataka, Odisha, Tamil Nadu, West Bengal, Bihar, Uttar Pradesh and Andhra Pradesh. Assam, Telangana, Uttarakhand, Chhattisgarh and Punjab reported higher coverage.
Pulses coverage also remained lower at 103.78 lakh hectares, compared with 105.73 lakh hectares last year, a decline of 1.95 lakh hectares or 1.84%. Karnataka, Maharashtra and Odisha recorded the major declines, while Uttar Pradesh reported a significant increase of 4.41 lakh hectares.
Coarse cereals and Shree Anna acreage declined by 4.71 lakh hectares to 168.50 lakh hectares from 173.21 lakh hectares, down 4.71 lakh hectares or 2.72%. Karnataka, Maharashtra and Tamil Nadu were among the major states contributing to the decline, while Madhya Pradesh, Chhattisgarh, Odisha, Rajasthan and Uttar Pradesh recorded higher coverage.
The major positive trend came from oilseeds, where acreage increased by 5.19 lakh hectares or 2.97% to 180.20 lakh hectares from 175.01 lakh hectares. Uttar Pradesh, Madhya Pradesh and Rajasthan recorded the largest increases. The rise was partly offset by declines in Gujarat, Maharashtra and Karnataka.
Cotton acreage was marginally lower at 106.01 lakh hectares, against 106.42 lakh hectares last year. Telangana, Gujarat, Tamil Nadu, Madhya Pradesh, Odisha and Andhra Pradesh reported higher coverage, while Rajasthan, Haryana, Karnataka, Maharashtra and Punjab saw declines. Sugarcane acreage was also slightly lower at 58.31 lakh hectares compared with 58.62 lakh hectares last year. Jute and mesta, in contrast, increased marginally to about 6.33 lakh hectares.
Rainfall: Countrywide deficit at 11%
The rainfall situation provides an important backdrop to the sowing pattern. During June 1-August 5, the country received 434.5 mm of rainfall against the normal 491.0 mm, resulting in an 11% deficit.
The regional picture was uneven. Central India was the only major region with a positive cumulative departure, receiving 559.9 mm against the normal 549.1 mm, or 2% above normal.
The East and Northeast region recorded the largest cumulative deficit at 27%, with rainfall of 588.9 mm against the normal 805.3 mm. The South Peninsula was 18% below normal, receiving 327.5 mm against 399.7 mm. Northwest India recorded a 12% deficit, with 285.6 mm against the normal 322.8 mm.
The short-term rainfall picture was considerably better. During July 30-August 5, the country as a whole received 66.8 mm against the normal 62.7 mm, an excess of 7%. Central India recorded a 14% excess, while South Peninsula was 39% above normal and East and Northeast India was 2% above normal. Northwest India, however, remained deficient by 22%.
Thus, the recent improvement in rainfall has not yet erased the cumulative seasonal deficit. The distribution also remains uneven, with the regions experiencing larger cumulative deficits continuing to face a more challenging water situation.
Reservoir storage: 166 reservoirs at 97% of normal
The Central Water Commission’s assessment of 166 important reservoirs as on August 6 shows that total live storage stood at 96.966 billion cubic metres (BCM), equivalent to 52.82% of their total live storage capacity.
This was substantially below the 132.368 BCM available at the same time last year and marginally below the normal storage of 99.831 BCM. Current storage was therefore 73.25% of last year’s level and 97.13% of normal, with the CWC recording the overall position as lower than both last year and normal.
Western region remains strongest
The Western region had the best storage position among the five regions. Its 53 monitored reservoirs held 28.899 BCM, equivalent to 75.86% of live capacity. This compared with 73.76% last year and 56.64% of normal, putting the region 33.95% above normal. Gujarat and Maharashtra were particularly strong, with storage departures of 40.58% and 30.52% above normal, respectively.
The Eastern region had 10.268 BCM in its 27 monitored reservoirs, or 47.19% of capacity. Although this was lower than the 54.97% recorded last year, it was above the normal level of 42.76%, giving the region a 10.36% positive departure from normal. Odisha, Assam, Nagaland and Tripura were among the states with better storage relative to last year.
The Northern region, comprising Himachal Pradesh, Punjab and Rajasthan, had 9.084 BCM in 11 reservoirs, or 45.80% of capacity. Storage was 70.43% of last year’s level and 53.47% of normal, translating into a 14.35% deficit from normal. Rajasthan had the largest negative departure among the three states at 18.53%.
The Central region had 23.022 BCM in 28 reservoirs, equivalent to 47.38% of capacity. This compared with 72.53% last year and 54.98% of normal, resulting in a 13.82% deficit from normal. Madhya Pradesh’s storage was 21.49% below normal, while Uttar Pradesh was 17.86% below normal. Chhattisgarh was an exception, with storage 27.40% above normal.
The Southern region had 25.693 BCM in 47 monitored reservoirs, representing 46.47% of capacity. Storage was 77.96% of last year’s level and 57.21% of normal, translating into an 18.78% deficit from normal, the largest among the five regions.
The situation was particularly weak in Telangana, where storage was only 20.92% of live capacity and 54.98% below normal. Tamil Nadu’s storage was 39.58% below normal. Andhra Pradesh, however, remained marginally above normal at 2.18%.
Water position adds to Kharif uncertainty
The combined picture of crop coverage, rainfall and reservoir storage suggests that the Kharif season remains uneven. The decline in rice acreage is the principal reason for the overall fall in sowing, while oilseeds have expanded significantly. At the same time, cumulative rainfall remains deficient in four of the five regions, and reservoir storage is below last year’s level nationally.
Overall, the data indicate that recent improvement in rainfall has not yet translated into a major recovery in aggregate Kharif acreage or reservoir levels. The coming weeks of the monsoon will therefore remain crucial for late sowing, crop establishment and replenishment of water reserves.
Anchor Investments and Textile Value-Chain
Tue. 11th Aug 2026, (Source: https://www.pib.gov.in)
PM MITRA Parks are a government initiative with scheme outlay of Rs. 4,445 Crore for the period 2021-22 to 2027-28 to create world-class, integrated textile manufacturing hubs across seven states in India to boost investment, employment, and exports. These parks are inspired by the ‘5F’ vision (Farm to Fibre to Factory to Fashion to Foreign) and aim to develop a complete textile value chain, from spinning to garmenting, with modern infrastructure and facilities. The seven selected locations are in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra. The PM MITRA Park scheme provides for the development of core infrastructure, including developed factory sites, plug-and-play facilities, incubation centres, roads, power, water and wastewater systems, as well as support infrastructure, including CETPs, workers’ hostels & housing, logistics parks, warehousing, medical facilities, and training & skill development facilities. Further, up to 10% of the park area may be utilized for commercial development, including shops & offices, shopping malls, hotels and convention centers. At present, Memoranda of Understanding (MoUs) have been signed with all States and 100% land has been acquired for all the sites. Environmental Clearances have been received for all PM MITRA Parks. Joint Venture Agreements have been signed and SPVs incorporated for all 5 greenfield sites. DPRs amounting to ₹13,537 crore have been finalized for all 7 States. Investment interests amounting to ₹68,590 crore have been received so far by the PM MITRA States. External infrastructure works amounting to ₹2,736 crore are under development, against which ₹797.30 crore has been expended so far. Internal infrastructure works for development of core infrastructure amounting to ₹1,720 crore have commenced across all States, against which ₹524 crore has been expended so far. The Ministry received 18 proposals from 13 states for setting up Parks under the scheme. 7 sites were selected out of which 5 are under the Greenfield category and 2 fall under the brownfield category. In Budget 2026-27, the new scheme for establishment of Mega Textile Parks is announced. The Government will request all State Governments to submit proposals in due course.
This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA MARGHERITA in a written reply to a question in Lok Sabha toda
Textile Recycling and Circular Economy
Tue. 11th Aug 2026, (Source: https://www.pib.gov.in)
The Government has undertaken several initiatives to promote textile recycling, adoption of recycling technologies and the transition towards a circular economy in the textile sector:
i) In the Union Budget 2026–27, the Hon'ble Finance Minister announced the ‘Tex-Eco Initiative’ to promote a globally competitive and sustainable textiles and apparel sector. The initiative aims to support innovative technologies for the circular economy, including textile waste management, recycling and value addition, development of recycled fibres, new materials, sustainable packaging and other high-value products from discarded textiles, in collaboration with research institutions, Textile Research Associations, Centres of Excellence, industry, start-ups and other stakeholders.
ii) The Ministry of Textiles has undertaken a study titled “Mapping of Textile Waste Value Chain in India”. The report estimates the generation of textile waste from pre-consumer sources such as manufacturing waste as well as post-consumer waste.
iii) The Government has also constituted an Environment, Social and Governance (ESG) Task Force to deliberate on sustainable production, certification and exports, besides facilitating industry-centric programmes such as Circular Samvaad and the Cluster Exchange Mechanism.
iv) The Government is also promoting textile recycling and sustainable manufacturing through policy support, research, innovation and capacity-building initiatives, including:
· The UNIDO-Global Environment Facility (GEF) project on eliminating hazardous chemicals from the textile fashion supply chain;
· The UNEP supported In-Tex India Project for Accelerating the Transition of the Indian Textile Sector towards Circularity using Life Cycle Assessment (LCA) and Product Environmental Footprint (PEF);
· Support for environmentally sustainable research and development under the National Technical Textiles Mission (NTTM);
· Development of a sustainability framework for PM MITRA Parks; and
· Promotion of upcycled products in Government procurement through an MoU among the Textiles Committee, Standing Conference of Public Enterprises (SCOPE) and Government e-Marketplace (GeM).
These initiatives are sector-wide and are intended to facilitate technology adoption, research, innovation, sustainable manufacturing and circular economy practices across the textile value chain.
This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA MARGHERITA in a written reply to a question in Lok Sabha today.
Bangladesh to revive 3 jute mills with $50 mn private investment
Wed. 12th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Bangladesh has signed leases with PRAN-RFL Group and a second private group to restart three BJMC jute mills in Sirajganj and Khulna. The projects carry Tk 6.19 billion in planned investment and at least 11,629 jobs, signalling potential fresh capacity for jute supply chains. The wider programme targets reopening 20 of 25 closed BJMC mills; 14 leases are complete and nine mills have resumed.
Bangladesh has moved ahead with plans to revive three idle mills of the Bangladesh Jute Mills Corporation (BJMC) through private-sector leases, involving proposed investment of Tk 6.19 billion ($50.1 million). The initiative is expected to create at least 11,629 jobs and generate potential annual turnover of Tk 11.75 billion ($95.1 million). Under the lease agreements, National Jute Mills Ltd in Sirajganj and Star Jute Mills Ltd in Khulna have been allocated to PRAN-RFL Group, while Platinum Jubilee Jute Mills Ltd in Khulna will be operated by HAMKO Group. Prime Minister’s Deputy Press Secretary Hasan Shiplu said the agreements were signed yesterday between BJMC, PRAN-RFL Group and HAMKO Group in the presence of Prime Minister Tarique Rahman at his office at the Secretariat. Brig Gen Md Kabir Uddin Sikder, chairman of BJMC, signed the agreements on behalf of the state-owned corporation. Aminur Rahman, group company secretary of PRAN-RFL Group, signed for PRAN-RFL Group, while ATM Mustafa signed on behalf of HAMKO Group. National Jute Mills in Raipur, Sirajganj, is expected to attract investment of around Tk 1.57 billion ($12.7 million), as reported by the local media. Once reopened, the mill is projected to create 5,238 jobs and generate annual turnover of about Tk 5 billion ($40.5 million). Star Jute Mills in Digholia, Khulna, is set to receive investment of around Tk 2.5 billion ($20.2 million). The mill is also expected to create 5,238 jobs and generate annual turnover of approximately Tk 5 billion ($40.5 million). Platinum Jubilee Jute Mills in Khalishpur, Khulna, is expected to receive investment of about Tk 2.12 billion ($17.2 million). The mill is projected to create at least 1,153 jobs and generate annual turnover of around Tk 1.75 billion ($14.2 million). During the signing programme, participants also discussed the government’s broader initiative to reopen 20 of the 25 closed BJMC mills through private management under lease arrangements. Leases for 14 mills have so far been finalised and possession transferred to the respective lessees, while production has already resumed at nine mills. Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir, State Minister for Textiles and Jute Md Shariful Alam, Textiles and Jute Secretary Sharf Uddin Ahmed Choudhury, and senior officials from BJMC and the leaseholding companies were also present.
