Cotlook Index: 19-08-2026
95.90 (-0.10)
ICE cotton jumps amid tight stocks, weaker dollar
Thu. 20th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton's December 2026 contract settled at 88.35 cents, up 2.94 cents, after breaking above the May high and setting a fresh contract high. Volume rose to 71,522 contracts and open interest hit 361,871, signalling new participation behind the rally. Tight world stocks, Texas weather risks, strong Chinese reserve buying and a weaker US dollar supported momentum.
ICE cotton futures jumped yesterday due to tight global stocks, weather concerns in the US, strong Chinese reserve sales and weaker US dollar. Higher trading volume and strong surge in cotton prices confirmed strength across the board. External factors also supported the natural fibre to gain in the market. The most active December 2026 contract settled at 88.35 cents up 2.94 cent. The contract ranged between 85.54 and 88.59 cents and broke above the previous high of 88.08 cents on May 13. The contract established a fresh contract high. Other contracts gained between 53 to 288 points. Volume jumped to 71,522 contracts, the highest in about six weeks, compared with only 36,827 Tuesday. Open Interest increased another 3,594 contracts to 361,871, marking the 13th consecutive increase and taking cumulative OI growth to 40,143 contracts. There are indications of new participation, supporting the rally rather than simply shorts covering. China's State Reserve auction remained fully sold out for the 23rd consecutive session. Today's sale was 8,058 tonnes, taking the 23-day total to 184,646 tonnes Continued strong buying from Chinese spinners and the prospect of replacement purchases remain supportive, although the auction alone does not explain Wednesday's nearly 300-point rally. The outside-market environment also helped. The US dollar declined for the 4th time in 5 sessions, improving the competitiveness of US cotton and providing a broad commodity tailwind. Lower Treasury yields following increased long-term bond buybacks also pressured the dollar. Gold and silver gained around 2.8 per cent, while corn and soybeans rallied on disappointing Pro Farmer Tour results and wheat gained on Black Sea concerns. The overall risk-on commodity environment therefore added momentum to cotton. The fundamental backdrop remains bullish. Persistent hot and dry conditions in Texas continue to threaten dryland cotton, while US cotton condition has fallen to only 38 per cent Good, compared with 40 per cent the previous week and 55 per cent last year.
USDA's latest WASDE also showed 2026-27 world ending stocks at 69.685 million bales, the lowest since 2011-12, with consumption running substantially above production. Tight global stocks, weather concerns, strong Chinese reserve buying and a weaker dollar are all providing underlying support. Technically, the move above 88.08 cents is important because it removes the previous May high as resistance. The first support is now 88.08 cents, followed by 86.33 cents and then the 84.00–85.00 cent zone. On the upside, 90.00 cents is the next major psychological level. Overall, Wednesday was a genuine momentum breakout rather than simply another recovery session. The combination of a new contract high, 71,522 contracts of volume, rising Open Interest, strength across deferred months and a close near the day's highs confirms strong participation behind the move. The key test now is whether December can hold above 88.08 cents. If it does, the market can reasonably target 90 cents and potentially higher. A quick failure back below 88 cents would instead indicate profit-taking after the sharp advance.
This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 88.18 cents per pound (down 0.17 cent), cash cotton at 83.25 cents (up 2.88 cent), the October 2026 at 86.38 cents (down 0.62 cent), the March 2027 contract at 89.93 cents (down 0.21 cent), the May 2027 contract at 90.97 cents (down 0.18 cent), and the July 2027 contract at 90.09 cents (down 0.15 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India's UP seeks to cut logistics costs through freight corridors
Wed. 19th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Invest UP and DFCCIL have signed a three-year MoU to strengthen multimodal freight connectivity across Uttar Pradesh's dedicated freight corridor network. The pact targets lower logistics costs and new manufacturing, assembly and logistics investments for cargo-intensive supply chains. Joint action plans, PM Gati Shakti integration and regular industry meetings are planned.
Invest UP and the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) have signed a memorandum of understanding aimed at strengthening multimodal freight connectivity in Uttar Pradesh, a move relevant for cargo-heavy manufacturing and sourcing supply chains evaluating logistics locations in the state. The agreement is designed to help Uttar Pradesh use its dedicated freight corridor network to reduce logistics costs and attract manufacturing, assembly and logistics investments. The three-year pact was signed by Sandesh Srivastava, executive director (projects), DFCCIL and Vijay Kiran Anand, chief executive officer, Invest UP in the presence of Deepak Kumar, infrastructure and industrial development commissioner. Under the MoU, DFCCIL will engage with industrial sectors and businesses to promote the use of the dedicated freight corridor (DFC) for cargo movement. Invest UP will present the rail network and its connectivity advantages while pitching Uttar Pradesh to companies seeking to establish manufacturing units, assembly facilities and logistics hubs. The two organisations will nominate nodal officers and prepare joint action plans. Invest UP will also share information on regulatory provisions and infrastructure available under the UP Industrial Investment and Employment Promotion Policy 2022, UP Warehousing and Logistics Policy 2022, and Gati Shakti Multimodal Cargo Terminal Policy. For data-led planning, industrial plot indices, geographic information system mapping and upcoming industrial corridor master plans will be integrated with the PM Gati Shakti portal. Regular meetings with industry stakeholders will be held to identify and address investor concerns and ease-of-doing-business issues.
US Cotton Industry Seeks New Demand
Thu. 20th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
New Demand Boosts US Cotton Industry
The US cotton industry is striving to boost demand and create new opportunities for farmers, processors, and manufacturers. Demand for US cotton has seen limited growth over the past two decades. During this period, synthetic fibers like polyester and nylon have expanded their market share, as they are often cheaper and easier to process. Simultaneously, rising cotton production in countries like Brazil has intensified competition for US farmers. This shift has also impacted the number of cotton gins; the decline in ginning facilities across the US reflects sluggish demand and changing market conditions. Amidst these challenges, the industry is backing the 'Buying American Cotton Act.' The proposed legislation aims to provide tax credits to manufacturers who use certified US cotton. Companies that manufacture cotton-based products in the US and sell them in the domestic market are expected to receive additional incentives. Leaders at the National Cotton Council believe that this measure could not only boost the use of US cotton but also encourage domestic value addition and investment. It is likely to drive increased investment in cotton production and processing facilities. Concurrently, the 'Plant Not Plastic' campaign is highlighting the environmental benefits of natural fibers. Amid growing concerns regarding microplastics associated with synthetic fabrics, emphasis is being placed on the biodegradable nature of cotton. The industry hopes that rising consumer awareness and domestic demand will revitalize the US cotton sector.
Maharashtra Cotton Targets Global Markets
Thu. 20th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Maharashtra’s Cotton to Reach Global Markets via ‘Farm to Foreign’ Initiative
The state government is promoting the ‘Farm to Foreign’ initiative to take cotton produced in Maharashtra—and products made from it—directly to overseas markets. The government aims to develop Maharashtra into a global export hub. Deputy Chief Minister Eknath Shinde stated that under the ‘Farm to Foreign’ concept, the entire supply chain—from cotton production to the global fashion market—will be strengthened. Speaking at the ‘Farm to Foreign Conclave 2026’ organized by ASSOCHAM at the Jio World Centre, Shinde said that the state government is working on the ‘5F’ concept to advance Prime Minister Narendra Modi’s vision of ‘Viksit Bharat 2047’ (Developed India 2047). Under this framework, the agriculture and textile sectors will be linked to the global market through stages such as ‘Farm to Fibre,’ ‘Fibre to Factory,’ ‘Factory to Fashion,’ and ‘Fashion to Foreign.’ The initiative aims to gain global recognition for Maharashtra’s cotton, silk, jute, and fruits, and to establish them as international brands. The PM MITRA Park in Nagpur and the Amravati Textile Cluster will play a pivotal role in developing Maharashtra into a leading textile hub for the country. Additionally, readymade garment clusters are being established in major textile centers like Ichalkaranji, Solapur, and Bhiwandi. Shinde emphasized that the government’s focus is not merely on increasing production but also on making the industry ‘green, digital, and transparent.’ Through this approach, efforts are underway to integrate production, processing, manufacturing, and exports, thereby taking Maharashtra’s agricultural and textile products to global markets.
What factors are lifting cotton prices in Brazil?
Thu. 20th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Brazilian cotton prices rose in early August as higher international prices and firm sellers pushed domestic values closer to export parity. The CEPEA/ESALQ Index increased 0.31 per cent to BRL 4.2171 per pound on August 17. Brazil's July exports fell 29 per cent month on month but rose 22 per cent year on year, while global 2026/27 demand is forecast to exceed supply by 4.55 per cent.
Cotton prices in Brazil rose in early August as firm seller positions and higher international prices pushed domestic values closer to export parity, while limited liquidity persisted amid difficulties for buyers and sellers to agree on prices and quality. The CEPEA/ESALQ Cotton Index increased 0.31 per cent between July 31 and August 17, reaching BRL 4.2171 per pound on August 17, according to the Sau Paulo’s Center for Advanced Studies on Applied Economics (CEPEA).
Brazil exported 154.97 thousand tonnes of cotton in July, down 29 per cent from June but 22 per cent higher than in July 2025, according to data from Secex. Global cotton production is projected at 25.24 million tonnes in the 2026/27 season, according to a July 30 report by Cotton Outlook. The estimate is 1.57 per cent lower than the June forecast and 5.6 per cent below projected output for the 2025/26 season of 26.733 million tonnes. Brazil’s cotton production for 2026/27 was maintained at 3.75 million tonnes. For the 2025/26 season, output was revised 2.14 per cent higher between June and July to 4.06 million tonnes. Global cotton consumption in 2026/27 is forecast at 26.38 million tonnes, up 0.88 per cent from the June estimate but 0.62 per cent below the previous season. Based on the projections, global demand could exceed supply by around 4.55 per cent. The combination of tighter global supply expectations, firm international prices and seller resistance is supporting Brazilian cotton prices, although trading activity remains constrained by differences over prices and quality.
Indonesia's textile industry eyes stronger growth amid recovery
Thu. 20th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Indonesia's textile and garment industry is showing signs of recovery, supported by rising investment, exports and improving industrial confidence. The sector exported $4.85 billion in the first half of 2026 and employs more than 3.8 million workers. The government is backing investment, restructuring, export financing, trade safeguards and green manufacturing to strengthen global competitiveness.
Indonesia’s textile and textile products industry is showing signs of recovery, with the government seeing further scope for growth as new investment, expanding exports and improving industrial activity support the sector, Industry Minister Agus Gumiwang Kartasasmita said, according to local media reports. The textile and garment sector recorded exports of $4.85 billion in the first half of 2026 and employs more than 3.8 million workers, highlighting its importance to Indonesia’s economy. The Industry Confidence Index also remained in the expansion zone at 53.10 in July, indicating improving industrial activity. The recovery is also being supported by investment. Indonesia’s textile and apparel industry attracted IDR 11.40 trillion in investment in the first half of 2026, up 11.85 per cent from a year earlier, while sector output grew 6.36 per cent year on year in the second quarter, according to industry reports. Kartasasmita said the government would continue working with industry associations, businesses, regional governments and other agencies to strengthen competitiveness and support expansion in global markets. Policy measures include investment incentives, restructuring programmes, labour-intensive industry credit, export financing through the Indonesian Export Financing Agency (LPEI), stronger trade safeguards and faster implementation of the Making Indonesia 4.0 programme. The government is also promoting Green Industry Standards as sustainability becomes increasingly important to international buyers. The government has identified textile manufacturing as an important sector for broader industrial transformation, with efforts also focused on strengthening the midstream segment, including yarn, fabric, dyeing, printing and finishing, to improve supply-chain integration and competitiveness.
Cambodia rolls out skills framework for textile, apparel industries
Thu. 20th Aug 2026, (Source: www.fibre2fashion.com/news)
Cambodia has launched the first sector-specific component of its Cambodia Skills Framework (CSF) for the textile and apparel industries, with formal endorsement from the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), aiming to align workforce skills with industry requirements and strengthen the sector’s competitiveness.
Insights: Cambodia has launched the first sector-specific component of its Cambodia Skills Framework for the textile and apparel industries. Developed by the Ministry of Economy and Finance, the framework maps skills, competencies and career pathways, helping align education and training with industry needs while supporting workforce planning, productivity and competitiveness.
Developed by the Ministry of Economy and Finance through the Skills Development Fund (SDF), the framework and its new digital dashboard establish a common reference for skills, competency levels and career pathways across the textile and apparel industries. The framework is designed to support workforce planning by providing policymakers with evidence-based information on industry skill requirements. It is also intended to help government and businesses develop more effective skills strategies. For training providers and educational institutions, the CSF provides a basis for aligning curricula and training programmes with industry needs. Employers and industry associations can use it to establish competency standards and identify employee development requirements to improve productivity and competitiveness. Workers, learners and job seekers are expected to benefit from clearer information on career pathways, required skills and opportunities for upskilling and career progression. The CSF organises industry roles through career maps, tracks and individual job positions, with each role linked to key tasks and required competencies. Skills are classified across basic, intermediate and advanced proficiency levels, allowing users to identify their current capabilities and areas for development. The textile and apparel sector is the first industry to be integrated into the framework, with the government planning to extend the CSF to other priority sectors. The initiative comes as Cambodia seeks to strengthen workforce capabilities amid export diversification and increasing foreign investment, while maintaining its participation in regional and global value chains.
China's Shengtai secures approval for $246 mn textile park in Morocco
Thu. 20th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Chinese textile manufacturer Shengtai Intelligent Manufacturing Group has secured approvals for a MAD 2.29 billion ($229 million) green textile industrial park in Morocco.
The project will produce cotton yarn, fabrics and clothing, boosting Shengtai's overseas supply capacity. The investment adds to Morocco's appeal as a textile manufacturing and export hub linking African and European markets.
Chinese textile manufacturer Shengtai Intelligent Manufacturing Group has secured key Chinese regulatory approvals for a planned MAD 2.29 billion ($246 million) green textile industrial park in Morocco, marking another major Chinese investment aimed at expanding textile production and overseas supply capacity. The Shengtai (Morocco) Green Textile Industrial Park Project has received an Enterprise Overseas Investment Certificate from the Department of Commerce of Hunan Province, along with a filing notice from the Hunan Provincial Development and Reform Commission. The project is planned to manufacture high-grade cotton yarn, fabrics and clothing, creating an integrated production base in Morocco. Shengtai said the investment will support the group’s global business expansion, strengthen overseas supply capacity and improve its ability to respond to changes in international trade and industrial policies, as per media reports. The investment comes as Morocco attracts increasing interest from Chinese manufacturers seeking production bases and access to international markets. The country’s proximity to Europe, trade agreements, industrial infrastructure and established manufacturing ecosystem are supporting its appeal as an export-oriented production location. Morocco is also seeking to expand beyond traditional automotive manufacturing into higher-value industries, including textiles and technical textiles. Manufacturing sectors such as automotive, aerospace, electronics, chemicals, technical textiles and electric-battery production have continued to expand in 2026. The Shengtai project therefore adds to a broader trend of Chinese industrial investment in Morocco and could strengthen the country’s position as a textile manufacturing and export hub linking African and European markets.
Textile Commissioner Visits WRA, Reviews Research & Sportech Initiatives
Thu. 20th Aug 2026, (Source: www.textilevaluechain.in)
The Wool Research Association (WRA) hosted Ms. Vrunda Manohar Desai, IRS, Hon’ble Textile Commissioner, along with her team members. During the visit, she toured WRA’s state-of-the-art infrastructure, including its advanced testing laboratories, R&D facilities, and the Centre of Excellence (CoE) for Sportech. Director General Shri Harish K. Chatterjee provided a comprehensive briefing on WRA’s ongoing and completed research projects. The discussion covered updates on sustainable wool processing and Sportech initiatives under the National Technical Textiles Mission (NTTM), as well as the latest testing and incubation activities. He also outlined WRA’s strategic roadmap for advancing sports textiles and scaling the broader technical textiles industry in India. Throughout the tour, the Hon’ble Textile Commissioner interacted with WRA’s scientists and team members, showing keen interest in the ground-level efforts contributing to the organisation’s success. Her visit and words of encouragement have greatly motivated the WRA team.
Intex-InMac Sri Lanka 2026 Concludes with Stronger Global Textile Sourcing and Technology Connections
Thu. 20th Aug 2026, (Source: www.textilevaluechain.in)
Three-Day Exhibition Attracted 7,889 Trade Visitors from 18+ Countries and Regions
The Opening Ceremony of Intex–InMac Sri Lanka 2026 was inaugurated by Chief Guest Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development, Government of Sri Lanka. The ceremony was attended by Mr. Mangala Wijesinghe, Chairman and Chief Executive, EDB; Mr. Yasas Hewage, Chairman, IDB; Mr. Felix Fernando, Chairman, JAAF; Mr. Yohan Lawrence, Secretary General, JAAF; Mr. Fazal M. Fausz, Chairman, SLABA; Mr. Husni Salieh, Chairman, FAAMA; Mr. Dhammika Fernando, Chairman, FTZMA; Mr. Fiki Oktanio, Deputy Ambassador and Minister Counsellor (Economic Section), Embassy of Indonesia in Colombo; Mr. Olivier Praz, Deputy Head of Mission (Deputy Ambassador), Embassy of Switzerland to Sri Lanka; Mr. Tang Rui, Economic & Commercial Counsellor, Embassy of China to Sri Lanka; Mr. Indika Salgado, President, SLCBCC; Mr. Rajesh Satam, Joint Director, TEXPROCIL; Mrs. Prachi Bhogle, Assistant Director, MATEXIL; Mr. Bharatkumar M. Chhajer, Export Panel Convenor & Past Chairman, PDEXCIL; and Mr. Akshay H. Shah, Assistant Director, FIEO, along with other senior government officials, diplomats, industry leaders, trade associations and international trade representatives. The Incredible Textiles of India Pavilion was inaugurated by H.E. Santosh Jha, High Commissioner of India to Sri Lanka, in the presence of Indian councils TEXPROCIL, MATEXIL, PDEXCIL and FIEO, along with other Indian textile companies. The pavilion highlighted India’s participation at the exhibition and brought Indian textile companies and industry organisations together at the event.
Intex-InMac brought together international suppliers from India, China, Sri Lanka, Japan, Taiwan, Indonesia, Netherlands, Australia, Germany, Korea, USA, Thailand and other key markets.
These exhibitors connected with garment manufacturers, exporters, sourcing professionals, technical and engineering teams, buyers and other industry stakeholders from Sri Lanka and beyond.
A key initiative during the event was the India - Sri Lanka Textile Trade Forum 2026, jointly organised with the High Commission of India to Sri Lanka. The forum brought together Indian and Sri Lankan manufacturers, suppliers, industry representatives and trade stakeholders for focused business discussions.
The discussions provided opportunities to explore bilateral sourcing, strengthen supplier-buyer relationships, identify new areas of cooperation and develop stronger connections between the textile and apparel ecosystems of India and Sri Lanka.
Knowledge exchange and industry dialogue formed an important part of Intex-InMac Sri Lanka 2026 through the Interactive Business Forum (IBF). During the seminar sessions, industry experts, manufacturers, sustainability leaders, technology professionals and business representatives discussed issues influencing the textile and apparel industry. Topics included green regulations and circularity, digital transformation, AI, automation, supply chain innovation and smart manufacturing. The sessions provided a platform for practical discussions and knowledge exchange beyond the exhibition floor. The response from trade visitors across the three-day exhibition reflected demand for international sourcing and technological solutions, alongside the industry’s focus on innovation, diversification and competitiveness. Intex-InMac Sri Lanka 2026 brought together the global textile and technology community with Sri Lanka through sourcing, business connections, knowledge exchange and international collaboration.
