Cotlook Index: 18-08-2026
96.00 (+0.75)
ICE cotton sees mixed trend amid bullish trend, stronger dollar
Wed. 19th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton futures were mixed as December 2026 settled at 85.41 cents, down 0.07 cent, after touching 86.33 cents, its highest intraday level since May 14. US cotton crop conditions slipped to 38 per cent good and excellent, with heat and inadequate rain keeping production risk in focus. A stronger US dollar and cautious demand limited upside, while deferred 2027 contracts made new highs.
ICE cotton futures noticed mixed trend yesterday. The front month contract eased on profit booking. But overall trend remained bullish as market was still influenced by dryness in the US’ cotton producing belt. Stronger US dollar put pressure on US cotton as it became more expensive for overseas buyers. The most active December 2026 contract settled at 85.41 cents down 0.07 cent. The contract eased after trading sharply higher during the session. December 2026 contract touched 86.33 cents, the highest intraday level since May 14, before giving back most of the gains and closing near the lower end of the range. The rest of the board was mixed, with contracts ranging from 25 points higher to 35 points lower. Importantly, May 2027 through December 2027 all made new contract highs, showing that deferred months continue to attract buying interest even as December pauses after its recent rally. Volume declined to 36,827 contracts, compared with 43,938 contracts Monday. The lower volume alongside the inability to hold 86 cents suggests some profit-taking and consolidation rather than aggressive fresh selling.US Crop Conditions remain the main fundamental support. USDA's latest report showed US cotton Good and Excellent condition at only 38 per cent as of August 16, down from 40 per cent the previous week and sharply below 55 per cent a year ago. This is now the lowest level for this period in three years, increasing concern about final production. Weather remains particularly important because temperatures in key US cotton areas have remained extremely high. Reports indicate that some regions have experienced temperatures above 100°F, while rainfall remains inadequate. Continued heat and dryness could further affect boll development and final yields. The market is therefore closely watching West Texas and other major cotton-producing regions. Extreme heat without meaningful rainfall would increase production risk and could provide another round of weather premium to prices. The broader global weather picture is also supportive. This year's El Niño is expected to be relatively strong and could significantly alter rainfall patterns, potentially affecting agricultural production and prices across major producing regions. At the same time, the US dollar remains a headwind. A stronger dollar makes US cotton relatively expensive for international buyers holding other currencies and can limit upside momentum even when the underlying supply fundamentals are supportive. China remains an important demand factor. Its State Reserve has continued to conduct consecutive 100 per cent sold-out auctions, providing a substantial outlet for cotton. However, higher futures prices have made some commercial buyers more cautious, so the market will need to see continued physical demand alongside reserve buying. Technically, 84.26 cents is the first important support, followed by the 84.00–85.00 cents breakout zone. As long as December holds this area, the recent breakout remains intact. On the upside, 86.33 cents is the immediate resistance from Tuesday's high. A sustained move above 86.33 cents would reopen the path towards 88.08 cents, the current contract high. Overall, Tuesday was a consolidation and profit-taking session rather than a clear bearish reversal. December briefly pushed to 86.33 cents and established another major high, while deferred contracts continued making new contract highs. Lower volume and a close near the day's low show that buyers were unwilling to chase prices above 86 cents, but the broader structure remains bullish. The market is now balancing tight global stocks, falling US crop conditions and extreme weather against a stronger dollar, cautious cash demand and profit-taking. The next important signal will be whether December can hold 84–85 cents and then regain 86.33 cents.
This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 85.50 cents per pound (up 0.09 cent), cash cotton at 80.37 cents (up 0.05 cent), the October 2026 at 84.12 cents (up 0.05 cent), the March 2027 contract at 87.29 cents (up 0.08 cent), the May 2027 contract at 88.50 cents (up 0.11 cent), and the July 2027 contract at 87.91 cents (up 0.10 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
What should Indian exporters know about the EU's CBAM rules?
Wed. 19th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India's Department of Commerce briefed exporters on EU CBAM rules, including covered products, obligations, emissions data, reporting and verification. About 100 exporters and stakeholders attended; case studies on iron and steel and aluminium addressed practical compliance issues. Further engagement will focus on capacity for sustainability-related trade regulations.
India’s Department of Commerce, under the Ministry of Commerce and Industry, organised an awareness session in New Delhi to help exporters understand and prepare for the European Union’s Carbon Border Adjustment Mechanism (EU CBAM) regulatory framework. The session, held at Vanijya Bhawan in collaboration with the National Accreditation Board for Certification Bodies (NABCB) and the Engineering Export Promotion Council (EEPC), focused on CBAM applicability, covered products, exporter obligations, embedded-emissions calculation, data collection, reporting requirements, accreditation and verification mechanisms. Around 100 participants, including exporters and industry stakeholders, attended the session, which was aimed at improving awareness and preparedness among Indian exporters on evolving CBAM requirements, the Ministry of Commerce & Industry said in a press release. The session provided an interactive platform for industry representatives to seek clarifications on compliance and reporting issues. Amit Verma, joint secretary, Department of Commerce emphasised the need to ensure that Indian exporters are adequately informed and prepared to meet emerging sustainability-related requirements in international markets. He also highlighted the Department’s efforts to create awareness and facilitate a better understanding of new regulatory requirements.
Verma reiterated that the Department remains engaged with industry and relevant stakeholders and is working towards addressing concerns and facilitating practical and workable solutions for Indian exporters. N Venkateswaran, chief executive officer, NABCB highlighted the importance of a credible accreditation and verification ecosystem in building confidence in emissions-related data and supporting compliance with CBAM requirements. Pankaj Chadha, chairman, EEPC underlined the importance of awareness and preparedness across the export value chain, including the availability of appropriate emissions-related data from suppliers and other stakeholders. He also emphasised the need for effective verification mechanisms to facilitate compliance by Indian exporters. The Department of Commerce reaffirmed its continued engagement with exporters, industry associations and relevant institutions to build awareness and capacity on emerging sustainability-related trade regulations and support Indian industry’s preparedness for changing global market requirements.
India, Bangladesh propose two task forces to boost trade, investment
Tue. 18th Aug 2026, (Source: www.fibre2fashion.com/news)
Indian industry representatives have proposed two joint business task forces with Bangladesh to push bilateral trade and investment into executable projects, with infrastructure, digital technology and emerging industries placed at the centre of the proposed mechanism, according to local media reports.
Insights: CII has proposed two joint task forces with Bangladesh on infrastructure and high-tech sectors to turn bilateral trade talks into projects. Land-port delays, particularly at Benapole, and raw-material movement were flagged as cost issues for cross-border supply chains. Duty rationalisation for energy-efficient steam technologies could affect textile, RMG and food-processing manufacturers.
The proposal was presented during a meeting between Bangladesh Commerce Minister Abdul Muktadir and an Indian business delegation at the Ministry of Commerce on August 18. The delegation included senior representatives of India’s leading business chamber and executives from major companies, including some with existing investments in Bangladesh.
The proposal by the Confederation of Indian Industry (CII) covers one task force focused on infrastructure, private investment and public-private partnerships (PPPs), and another aimed at high-tech and future industries.
The 18-member CII delegation, led by director general Chandrajit Banerjee, had arrived in Dhaka on Monday and had already met some government stakeholders. The commerce secretary, senior officials and delegation members were also present at the meeting.
For cross-border supply chains, Indian business leaders raised concerns about the movement of raw materials and finished goods through Bangladesh’s land ports, especially Benapole. The minister said stronger cargo-handling capacity at Benapole and smoother border movement could reduce transport and material costs and create room for higher bilateral trade.
CII representatives also emphasised local manufacturing as a way to reduce import dependence and accelerate project execution. Citing a joint venture with Energypac, they said shipments through land ports currently take 40-45 days, and that more domestic production could cut such delays.
The delegation also sought rationalisation of duty structures on energy-efficient steam technologies, saying such systems could lower gas consumption by 10-35 per cent across Bangladesh’s textile, ready-made garment (RMG) and food-processing sectors.
Muktadir welcomed the task force proposal and said Bangladesh needs large-scale infrastructure investment to move towards a trillion-dollar economy. He called for wider trade, investment, industrial co-operation and private-sector participation so that the two neighbours’ geographical proximity can translate into economic gains.
The minister also highlighted the need to remove trade barriers, normalise trading conditions, ease visa procedures and deepen business-to-business (B2B) links. Referring to recent trade restrictions, he called for bilateral discussions to restore trade to previous levels and expressed optimism about progress in the coming months.
The proposal is expected to be discussed with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
The meeting concluded with both sides agreeing to prioritise actionable projects, stronger B2B engagement and institutional mechanisms to support investment and joint ventures across infrastructure, manufacturing, technology and emerging sectors.
India seeks greater Japanese investment in manufacturing, technology
Wed. 19th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India has invited Japanese companies to expand investments and partnerships, with Uttar Pradesh positioned as a key destination for manufacturing and innovation. The pitch covered technology, infrastructure, logistics, energy, mobility and industrial clusters, all relevant to supply-chain planners. Goyal will visit Japan from August 24-27, 2026, to advance talks with government and industry. India has invited Japanese businesses to deepen investments and partnerships in the country, with Uttar Pradesh being positioned as a growth centre for manufacturing, technology-led industry and Japanese innovation serving the Indo-Pacific and global markets. Commerce and Industry Minister Piyush Goyal made the pitch to a Japanese delegation in New Delhi yesterday, in the presence of Uttar Pradesh Chief Minister Yogi Adityanath. Goyal highlighted the growing depth and strategic importance of the India-Japan partnership and said the delegation from Yamanashi Prefecture reflected the widening reach of bilateral cooperation into India’s states and regions, the Ministry of Commerce & Industry said in a press release. The minister said India and Japan share a close and enduring partnership rooted in common aspirations for peace, progress and prosperity in the Indo-Pacific. He said the seven streams of national transformation outlined by Prime Minister Narendra Modi—manufacturing, agriculture, technology, infrastructure, energy and defence, green and blue economy, and India’s civilisational soft power, are areas where Indian and Japanese strengths complement each other.
Referring to the 16th India-Japan Annual Summit held in Delhi in July 2026, Goyal highlighted Japan’s target of investing 10 trillion yen (~$62.7 billion) in India over the next decade. He said investments in artificial intelligence, semiconductors, critical minerals, batteries, energy and next-generation mobility would help shape the future of both economies. Goyal said the partnership is already visible through the Mumbai-Ahmedabad High-Speed Rail project, Japanese-assisted metro systems in Delhi, Ahmedabad, Bengaluru and Chennai, and 11 Japanese industrial townships across eight states. Bilateral trade stood at around $27.5 billion in FY 2025-26, while Japan is now India’s fifth-largest source of foreign direct investment, Goyal said, describing this as a strong base for further expansion of economic ties. Drawing on the Japanese philosophy of Kaizen, Goyal said India’s reform journey reflects a similar spirit of continuous improvement. He highlighted reforms in ease of doing business, infrastructure, digital public infrastructure, multimodal logistics and expanding Japanese language capabilities as part of India’s efforts to create a more enabling investment environment. Goyal said Uttar Pradesh is India’s third-largest state economy, has more than 9 million micro, small and medium enterprises, and is the fifth-largest state exporter. Enterprises such as Escorts Kubota and Seiko Advance are already contributing to the state’s manufacturing ecosystem, he added. He further said he will visit Japan from August 24 to 27, 2026, to take these discussions forward at the highest levels of government and industry and further strengthen the Special Strategic and Global Partnership between India and Japan. Recalling the historical connection through the teachings of Buddha, he invited Japanese businesses to make India, and Uttar Pradesh in particular, a centre of their growth.
Shurley: August Reports Offer Mixed Bag for Cotton
Mon. 17th Aug 2026, Dr. Don Shurley (Source: www.cottongrower.com)
USDA’s August monthly crop production and supply and demand estimates were mixed news and should likely have little impact on the market. But anyway, the focus seems increasingly to be on the weather and crop conditions.
Prices (Dec futures) have been in a good uptrend over the past 3 weeks with only 1 little hint of a hiccup during that time. We’ve been at 80+ cents for most of the time dating back to early July
There would seem to be little reason to stop the train. But let’s remember what got us here—prices are based on expectations and then whether or not those expectations are realized. Price has improved 8 cents since the most recent lows. Why? In part, the expectations are that the US crop will decline and global demand will improve (and hopefully US exports as well).
In this week’s August Crop Production report:
The following is a summary of the US and World supply and demand estimates for August:
Crop condition has slowly trended down for much of the season. In the latest report, as of August 9th, conditions have dropped markedly for 2 straight weeks. As of Aug 9, Texas was 34% poor or very poor; Oklahoma was 20%. By contrast, several states were over 70% good to excellent, including Alabama, Arkansas, Missouri, and North Carolina. Georgia was 62% good to excellent.
India's crop insurers seek data protection law to expedite farm innovation
Wed. 19th Aug 2026, (Source: www.economictimes.indiatimes.com)
Synopsis: Indian crop insurers are asking the government for regulatory data protection. This provision would encourage the introduction of newer, safer pesticide molecules. Companies seek a five-year exclusive access window for newly registered products. This change aims to boost farm output and agrochemical exports competitiveness. International comparisons show other nations offer similar data protection periods.
New Delhi: Five of India's largest crop insurers have jointly asked the government to include a provision for the protection of regulatory data in the draft Pesticides Management Bill, 2025, arguing that the absence of such a framework is slowing the entry of newer, safer pesticide molecules into the country. In a joint statement, Crystal Crop Protection, Rallis India, Dhanuka Agritech, PI Industries and Godrej Agrovet, all members of industry body CropLife India, sought a five-year, time-bound data protection window starting from the first registration of a new molecule or new use. Under the PRD (protection of regulatory data) provision, a company that generates the safety, efficacy and residue data required to register a new molecule would get exclusive access to that data for a fixed period, after which the molecule would open up to the rest of the industry, including generic manufacturers and small and medium enterprises. Industry executives say the economics currently discourage anyone from bringing new chemistry into India. Registering a new molecule costs an estimated Rs 40-50 crore and takes six to eight years of local trials, but without protection, a later applicant can access the same data within a year for around Rs 75 lakh. "A limited window restores that incentive, and once it ends, the molecule is open to the whole industry," the companies said in a joint statement, adding that the change would not affect any product already registered in the market since it would apply only to new molecules and new uses. Citing a CropLife India-Yes Bank knowledge report, the companies said India loses 10-35 per cent of its farm output annually - worth roughly Rs 2 lakh crore - to pests, weeds and diseases, with resistance and climate-driven shifts in pest patterns making the case for newer, lower-dose molecules more urgent. They also pointed out that India has registered only 380 of the roughly 1,200 pesticide molecules in use worldwide, a gap they said limits both farm productivity and the competitiveness of India's agrochemical exports, which need newer chemistry to meet tightening residue limits in overseas markets. The industry also flagged what it called two under-discussed benefits: curbing the practice of hundreds of identical registrations for a single molecule, which drives prices down to levels that encourage overuse and counterfeit products, and channelling more research work - including stewardship and resistance-management responsibilities during the protected period - into Indian laboratories and field stations. On the international comparison, the companies noted that China offers six years of data protection and is now the world's largest agrochemical exporter, while Thailand, Brazil and the United States offer up to ten years, and the European Union offers ten years - extended to thirteen for low-risk and biological products. India currently has no such provision. Ankur Aggarwal, Chairman of CropLife India and Executive Chairman & Managing Director of Crystal Crop Protection, said a time-bound data protection window would bring farmers newer tools sooner, "and every molecule it brings in early belongs to the whole industry once the window closes." Gyanendra Shukla, Vice Chairman of CropLife India and MD & CEO of Rallis India, said the exporting countries India competes with "adopted data protection and grew stronger for it." Rahul Dhanuka, Managing Director of Dhanuka Agritech, and Mayank Singhal, Vice Chairperson & Managing Director of PI Industries, echoed the call for a predictable framework, while N K Rajavelu, CEO of Godrej Agrovet, said extending protection for low-risk products, as the EU does, could encourage "climate-friendly molecules" for Indian agriculture.
Bangladesh, Netherlands sign MoU to promote circular economy in textiles
Mon. 17th Aug 2026, (Source: www.textiletoday.com.)
Bangladesh and the Netherlands have signed a memorandum of understanding (MoU) to strengthen cooperation on the circular economy, with a focus on making Bangladesh’s textile and ready-made garment (RMG) sectors more sustainable and competitive. The agreement will support cooperation across the textile value chain. It will focus on efficient resource use, waste reduction, recyclable production systems and green industrialization, according to the Ministry of Commerce. Khandakar Abdul Muktadir, Commerce Minister, Government of Bangladesh, signed the MoU on behalf of Bangladesh, while Stientje van Veldhoven, Minister for Climate and Green Growth, Government of the Netherlands, signed on behalf of her country. The two ministers joined the signing ceremony virtually. Md Ataur Rahman Khan, Secretary, Ministry of Commerce, Bangladesh; Bangladesh Ambassador to the Netherlands Faiyaz Murshid Kazi and Joris van Bommel, Dutch Ambassador to Bangladesh, among others, attended the program. Muktadir said sustainable production systems and circular approaches have become necessary for the global textile industry. “Bangladesh’s RMG and textile supply chains are deeply integrated into the global market. So, international cooperation in these sectors needs to be strengthened,” he said. He said the agreement is an important step toward building a greener, more resilient and future-oriented economy. According to Muktadir, the circular economy can help Bangladesh improve resource efficiency, attract sustainable investment and create green jobs. It can also strengthen the long-term competitiveness of the country’s export sector.He also highlighted the importance of sustainability as Bangladesh moves toward graduation from the least developed country (LDC) category. Strengthening industrial sustainability, adopting environmentally friendly production systems and meeting international standards will help Bangladesh remain competitive in future global trade, he said. Van Veldhoven said expanding the circular economy is now extremely important. However, she said no country can complete the transition alone. International cooperation, commercial partnerships and coordinated action are needed across the entire supply chain. Officials from Bangladesh and the Netherlands have already discussed priority areas for cooperation, she said. “These discussions now need to be quickly translated into concrete measures,” she added. The Dutch minister also expressed interest in expanding cooperation between the two countries through international forums.She hoped the partnership would become more effective and focused on measurable results. The MoU is expected to create new opportunities for green technologies, innovation and sustainable production systems in Bangladesh’s textile and RMG sectors.It could also support better resource use and help strengthen Bangladesh’s competitiveness in international markets.
