Cotlook Index: 20-08-2026
98.90 (+3.00)
ICE cotton notices mix trend amid consolidation phases
Fri. 21st Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton futures consolidated after Wednesday's surge, with December 2026 settling at 88.34 cents after testing 89.45 cents per pound. China's State Reserve logged its 24th straight 100 per cent sold-out auction; USDA export sales reached 280,110 bales for the week ended August 13. US crop ratings fell to 38 per cent amid Texas heat and dryness, keeping support as December eyes 90 cents.
ICE cotton futures witnessed mixed trend yesterday after strong surge on Wednesday. Several cotton contracts faced consolidation despite intact bullish tone. Consistent buying of Chinese reserve buying indicated continued appetite of consumer industry. Drought worries in the US’ cotton growing belt remained supportive factor for the market. The most active December 2026 contract settled at 88.34 cents down 0.01 cent. The contract earlier reached high of 89.45 cents per pound. December contract briefly challenged the psychological level of 90 cents but then consolidated and remarkably held almost all of Wednesday’s massive 294-point gain. Other contracts closed between 10 lower to 41 points higher, with new contract highs continuing across much of the curve. Volume remained very strong at 61,356 contracts, compared with 71,522 Wednesday. Open Interest increased another 4,591 contracts to 366,462, marking the 14th consecutive increase and taking cumulative growth to 44,734 contracts. China's State Reserve completed its 24th consecutive 100 per cent sold-out auction. Today's offering of 8,032 tonnes was approximately 35,341 bales, taking the 24-day cumulative total to 192,497 tonnes, or about 846,987 bales. United States Department of Agriculture (USDA) export sales for the week ended August 13 were also supportive. Total net sales reached 280,110 bales, including 274,216 upland and 5,894 Pima. Of this, 215,254 bales were for 2026-27 and another 64,856 bales were booked for 2027-28, showing that buyers are already committing to forward supplies. The broader fundamental backdrop remains supportive. US crop conditions have deteriorated, with the latest good rating at only 38 per cent, compared with 40 per cent the previous week and 55 per cent last year. Continued heat and dryness in Texas remain a concern for production. The market still does not have one clear headline explaining the extraordinary rally. Instead, several factors are working together: deteriorating US crop prospects, tight global stocks, strong Chinese reserve buying, solid export demand, forward bookings, rising Open Interest and a weaker dollar. This combination has allowed prices to climb roughly 11 cents in only seven sessions. Overall, this was a high-level consolidation rather than a bearish reversal. New highs, very high volume, another large OI increase, consecutive sold-out Chinese auctions and solid export sales all continue to support the bulls. The key question is now whether December can finally clear and hold 90 cents. A sustained break above 90 cents could accelerate momentum further, while a failure below 87.26 cents would increase the probability of profit-taking and a deeper correction towards 86 cents. This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 88.62 cents per pound (up 0.28 cent), cash cotton at 83.27 cents (up 0.02 cent), the October 2026 at 87.02 cents (up 0.02 cent), the March 2027 contract at 90.42 cents (up 0.34 cent), the May 2027 contract at 91.35 cents (up 0.30 cent), and the July 2027 contract at 90.44 cents (up 0.26 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
US cotton shipments surge 58% as demand remains broad-based
Fri. 21st Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: US Upland cotton shipments rose 58 per cent week on week to 222,000 RB, with Vietnam the largest destination. Net Upland sales for 2026–27 totalled 209,400 RB, below 905,000 RB in the previous week, led by Vietnam, Pakistan and El Salvador. Pima sales were 5,900 RB and shipments 6,900 RB; forward Upland sales reached 64,900 RB, but China reductions limited bullish sentiment.
US cotton export shipments strengthened during the week ended August 13, 2026, providing a positive demand signal despite a normalisation in new bookings from the exceptionally high opening-week level. Upland exports rose 58 per cent week on week, while sales remained spread across Vietnam, Pakistan, Central America and India, according to the USDA's weekly export sales report. Net sales of Upland cotton for the 2026-27 marketing year totalled 209,400 RB (running bales, each weighing 226.8 kg). Although substantially below the previous week’s unusually high bookings of 905,000 RB, the latest sales reflected continued demand from several major cotton-consuming markets. Vietnam remained the largest buyer with 55,400 RB, including 2,700 RB switched from Indonesia and reductions of 700 RB. Pakistan purchased 51,900 RB, followed by El Salvador with 40,100 RB, Honduras with 27,600 RB and India with 16,500 RB, including 900 RB switched from Bangladesh. The sales were partly offset by reductions for China at 4,800 RB, Mexico at 4,000 RB, Turkiye at 1,200 RB and Hong Kong at 600 RB. Forward demand also provided support, with Upland cotton sales for the 2027-28 marketing year reaching 64,900 RB. El Salvador accounted for 35,100 RB, followed by Guatemala with 15,400 RB and Honduras with 14,300 RB. Upland cotton export shipments increased to 222,000 RB from 140,500 RB in the previous report. Vietnam was the largest destination at 66,800 RB, followed by Pakistan with 30,200 RB, India with 28,200 RB, Bangladesh with 22,400 RB and Turkiye with 21,500 RB. Net sales of Pima cotton for 2026–27 totalled 5,900 RB, compared with 50,600 RB in the previous week. India led purchases with 3,000 RB, followed by Vietnam with 1,800 RB, Djibouti with 600 RB, Peru with 500 RB and Thailand with 400 RB. These sales were partly offset by reductions for Hong Kong and Mexico. Pima’s shipments rose to 6,900 RB from 6,000 RB in the previous report. India received 2,700 RB, Pakistan 2,400 RB, Turkiye and Djibouti 600 RB each, and Bangladesh 200 RB. The latest report was moderately positive for US cotton market sentiment. The sharp rise in physical shipments demonstrated progress in executing existing commitments, while broad-based Upland purchases and forward bookings from Central America indicated continued overseas interest. However, lower weekly sales and reductions from China limited the strength of the bullish signal.
Philippines' DOST transforms farm waste into textile fibres
Thu. 20th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: DOST is converting agricultural fibres in Vintar, Ilocos Norte, into yarn and textile products through training and a local Yarn Production Center. The programme gives rice and vegetable farmers added income beyond crops and connects local fibre extraction with weaving.
PWDs and community weavers are gaining skills as the government pushes local inputs and traditional Filipino designs.
The Department of Science and Technology (DOST) is converting agricultural fibres in Vintar, Ilocos Norte, into yarn and textile products, creating additional livelihood opportunities for farmers and weavers while supporting the local Filipino textile industry. Through DOST training, rice and vegetable farmers in Vintar are learning to extract fibres from bamboo and other agricultural materials. The technology gives agricultural byproducts added value and enables farmers to earn beyond traditional crop production by taking part in the textile production chain. The extracted fibres are processed into yarn at the DOST Yarn Production Center in the town, connecting local agricultural output with the weaving sector, as reported by local media outlet. The facility supports locally sourced materials and uses science-based processing technologies to help sustain traditional Filipino weaving and designs. Renato U. Solidum Jr., DOST Secretary said: “The directive, through the use of what was previously considered agricultural waste, is to grow the textile industry—the Filipino textile.” The initiative also extends livelihood opportunities to persons with disabilities (PWDs) and other community members. Carolyn Sabado, weaver said: “Before, we just stayed at home. Now we earn and are able to support our parents. We were trained by DOST.” President Ferdinand R. Marcos Jr. witnessed the DOST-supported activities during his visit to Vintar on August 7, 2026, including farmer training in fibre extraction and the operations of the Yarn Production Center. He emphasised the importance of developing local raw materials and reducing dependence on imported textile inputs. Ferdinand R. Marcos Jr., President said: “Before, we used to even import raw materials. That shouldn’t be the case. We are very capable of doing it ourselves.” He also welcomed the establishment of processing centres that allow locally sourced materials to be used while helping revive traditional Filipino designs. “That’s why it is good that we have built processing centers like this so we can source everything locally. These are our traditional designs. We’re very happy that this industry will be revived,” he added. The programme links agriculture, manufacturing and traditional craftsmanship by turning agricultural waste into higher-value textile inputs and products, while creating new community-level opportunities around fibre extraction, yarn production and weaving.
Telangana Cotton Sowing Surpasses Normal
Fri. 21st Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Cotton and Oilseed Sowing Increases in Telangana Compared to Last Year
In Telangana, cotton sowing has surpassed the normal acreage, whereas oilseed sowing still lags behind the normal area. According to data from the Agriculture Department as of August 19, 2026, cotton has been sown across 48.19 lakh acres in the state, against a normal area of 47.42 lakh acres. This represents 101.63% of the normal area. By the same date last year, cotton sowing covered 44.92 lakh acres; thus, the cotton acreage has increased by 3.27 lakh acres, or 7.28%, this year. Oilseed sowing has been carried out on 3.88 lakh acres against a normal area of 4.48 lakh acres, which is 86.72% of the normal area. However, compared to the 3.67 lakh acres recorded during the same period last year, the oilseed acreage has increased by 0.21 lakh acres, or 5.72%, this year. Among oilseeds, soybean—the major crop—has been sown on 3.72 lakh acres against a normal area of 4.17 lakh acres. This stands at 89.21% of the normal area. By the same date last year, soybean sowing covered 3.60 lakh acres; this year, there has been an increase of 0.12 lakh acres, or approximately 3.33%. Thus, cotton sowing in Telangana has crossed the normal acreage during the current Kharif season. Meanwhile, while the acreage for oilseeds and soybean has increased compared to the same period last year, both crops still trail behind their respective normal areas.
Cotton Price Surge Hurts Textile Industry
Fri. 21st Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Unwarranted Surge in Cotton Prices Puts Textile Industry in Distress
The textile industry is facing difficulties due to an unwarranted rise in cotton prices, despite the central government waiving import duties on the commodity. Kiran Tarlekar, Chairman of the Vita Powerloom Industrial Cooperative Union, has urged the government to intervene immediately and curb the price hike. Cotton prices have currently reached a record high of ₹70,000 per candy.
Tarlekar stated that, according to a report by the All India Cotton Association, the closing stock of cotton for this season is projected to be 9.3 million (93 lakh) bales—68 percent higher than the previous year. Meanwhile, the central government has waived import duties on cotton until October 26. Consequently, cotton imports are estimated to reach a record 6.3 million (63 lakh) bales this year, compared to approximately 4.1 million (41 lakh) bales imported last year.
With the new cotton crop expected to hit the market from October 26, it was anticipated that domestic cotton prices would decline or, at the very least, remain stable. Contrary to this expectation, cotton prices—which were hovering around ₹56,000 per candy—have surged to a record ₹70,000 per candy in recent days. This one-sided price surge has plunged the entire textile value chain into uncertainty and distress, even though there is adequate cotton stock in the market, imports have increased, and the arrival of the new crop is imminent. Industry stakeholders suspect that large traders are hoarding significant stocks in warehouses to create an artificial shortage, thereby driving up prices. Separately, the dyeing industry in Rajasthan has been shut down for the past two months due to a Supreme Court order. This has created a problem of accumulated fabric stocks for the simple powerloom sector. Meanwhile, the automatic powerloom industry is also grappling with various challenges. Consequently, decentralized power looms in Vita, Ichalkaranji, Malegaon, Solapur, and Bhiwandi are operating at limited capacity, and the demand for cotton yarn has also been affected. If this one-sided surge in cotton prices continues, the state's yarn mills—like the power loom industry—could also face a situation where they are forced to halt production. Industry stakeholders have urged the government to examine the cotton price and stock situation and take necessary measures.
Union Minister Shri Shivraj Singh Chouhan participates in the "Krishi Jan Kalyan Samvad" in Patna
Thu. 20th Aug 2026, (Source: www.pib.gov.in)
Union Minister Shri Shivraj Singh Chouhan met with farmers at the "Krishi Jan Kalyan Samvad" held in Patna, listened to their problems, and also sought their suggestions. He also highlighted the Central government's policies and successful agricultural models. He termed the Farmers as the ‘Living God’ on earth and serving farmers is his priority. Specifically, for improving the lot of small farmers, Shri Chouhan explained that integrated farming can provide stable income even on small pieces of land. Agriculture Minister Shri Chouhan shared details of integrated farming implemented at the ICAR Eastern Campus. For example, in a 2-3 bigha model, after paddy, the fields are divided into four sections and planted with wheat, gram, mustard, and maize. Additionally, fish farming in the ponds, poultry units, duck farming, vine vegetables, fruit trees, and fodder fields increase family income in a consecutive manner. In such an integrated model, multiple income sources ensure stable income throughout the year, and many families are able to increase their annual income up to Rs 2 lakh. Shri Shivraj Singh Chouhan also highlighted the benefits of natural farming and urged farmers to try natural and advanced farming on a small portion of their land before covering their entire land on large farms. He explained that excessive use of chemical fertilizers is degrading the soil health, so it is important to emphasise upon the organic and balanced farming. Union Minister Shri Shivraj Singh also said that the Center and the States will work together on marketing and branding their organic products to help the farmers get better price and recognition. The Union Minister commended the experiences of progressive farmers during the event i.e. Shri Ramjeet Sharma, Shri Ramkumar Vinay, Sushila Devi Ji, and Shri Sudhanshu. He assured them that the government would take their suggestions seriously. Sharing his experience, the minister explained that he preferred to spend time in the fields, among farmers, rather than in hotels; this allowed him to deeply understand the real condition of the land and their lifestyle. Shri Shivraj Singh Chouhan stated that this interaction was not merely an event, but a means to meet farmers and gain a firsthand understanding of their problems and concerns. He promised to visit Bihar again to see initiatives related to the improvement of soil and the livelihood Bihar farmers, and that concrete steps would be taken to improve farmers' incomes and living standards through Central-state cooperation.
Bangladesh's textile sector calls for tighter yarn import rules
Fri. 21st Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Bangladesh textile millers have urged the government to withdraw the bonded import facility for 10–30 count yarn, arguing that cheaper imports are hurting domestic spinners. The BTMA also sought tighter controls on yarn imports, a review of fabric wastage allowances and import policies, while industry leaders called for cheaper export finance and reliable energy supplies.
Bangladesh textile millers have urged the government to withdraw the bonded import facility for 10-30 count yarn, making import controls a key issue for the country's textile and garment supply chain as local spinning mills face growing pressure from cheaper imported yarn. Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), raised the demand at the first co-ordination meeting of the textile and garment sector, an initiative of Prime Minister Tarique Rahman to address industry challenges.The meeting was chaired by Commerce Minister Khandakar Abdul Muktadir, who also heads the committee at the Commerce Ministry.
The BTMA argued that domestic spinning mills have sufficient capacity to supply 10-30 count yarn, which is widely used in the industry. Millers said cheaper imports, including consignments allegedly cleared through misdeclaration, have been putting additional pressure on local spinners, reported local media outlets. Leaders of the BTMA, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) attended the meeting. The BTMA also called for a review of wastage allowances for knit fabrics, alleging that some traders sell fabrics in the domestic market after importing them under the bonded facility. The allowable wastage rate was increased to 32 per cent from 16 per cent in 2021. The association further demanded that non-bonded companies using bank guarantees to import raw materials be required to meet a 30 per cent value-addition condition. It also urged the government to review the Import Policy Order 2026-29 in consideration of the textile sector's interests. The Commerce Ministry has separately sought instructions for customs houses to ensure that the cotton yarn count is clearly stated in the commercial description of import bills of entry. Yarn count is a technical measure of yarn thickness and fineness, with 10–30 count generally classified as medium to coarse yarn and widely used as a raw material in Bangladesh's knitwear sector. The government has been considering tighter controls on yarn imports, restrictions on duty-free yarn imports and incentives to encourage the use of locally produced yarn, amid concerns over rising imports, particularly subsidised supplies from India, as per local media reports. At the meeting, textile and garment industry leaders also called for an increase in the Export Development Fund and for loans under the fund to carry an interest rate of 2 per cent. They also sought reliable energy supplies to prevent factories from keeping production lines idle. BGMEA President Mahmud Hasan Khan said after the meeting that the BGMEA and BTMA had reached consensus on almost all issues, with only a few matters remaining unresolved. BKMEA President Mohammad Hatem urged the government to revise the conditions attached to cash incentives for export-oriented garment products using locally produced yarn. BGMEA Vice-President Md Shehab Udduza Chowdhury said many factories had been unable to access loans under the government-sponsored stimulus package because of stringent eligibility conditions. Bangladesh's ready-made garment (RMG) industry is the world's second-largest apparel exporter. Local textile mills meet about 60 per cent of the country's woven-fabric demand and almost the entire yarn requirement of the knitwear sector. However, spinning mills have faced severe financial pressure for more than a year, with some reportedly selling yarn below production cost to remain competitive.
India's import reliance exposes vulnerabilities beyond energy: Crisil
Fri. 21st Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India's dependence on imported energy and industrial inputs leaves the economy exposed to global disruptions, with mining and manufacturing the most import-dependent major sectors. Crisil said diversification, strategic reserves and stronger domestic production are crucial to reduce supply shocks, inflation risks and reliance on critical imports.
India’s high dependence on imported energy and industrial inputs leaves the economy vulnerable to global disruptions, with manufacturing and mining emerging as the country’s most import-dependent major sectors, according to a Crisil Quickonomics report. The report found that 35.4 per cent of India’s mining supply and 13.8 per cent of manufacturing supply was met through imports in 2023-24, compared with 10.8 per cent for public administration, defence and other services and just 1.9 per cent for agriculture and allied activities. Manufacturing faces significant exposure to imported inputs. Energy remains the biggest vulnerability, while dependence on strategic technology inputs is also significant. Within mining, crude oil is the largest import-dependent product, with 85-90 per cent of domestic requirements met through imports. Natural gas accounts for 66.1 per cent of domestic supply and copper ore for 68.8 per cent. The report identified food, energy and new-age strategic sectors as key prerequisites for economic security. While only 1.9 per cent of agricultural and allied supply is imported, edible-oil imports accounted for 56.2 per cent of domestic consumption in fiscal 2024, while fertiliser import dependence stood at 31.3 per cent. Crisil noted that geopolitical tensions and growing trade protectionism are increasing risks to global supply chains and commodity markets. International prices for energy, food, fertilisers and metals have remained elevated since 2021, while restrictive trade measures have expanded faster than trade-liberalising measures since then. The report said excessive dependence on critical imports is no longer simply a trade issue, as disruptions can create supply shocks that simultaneously affect economic growth and inflation. It recommends diversifying import sources, strengthening strategic reserves and expanding domestic production capacity wherever feasible. Government initiatives including the Production-Linked Incentive (PLI) scheme, Electronic Component Manufacturing Scheme, India Semiconductor Mission and Rare Earth Permanent Magnet Scheme are aimed at building domestic capabilities and reducing strategic import dependence.
Sanathan Textiles Expands Technical Textiles Production at Silvassa
Fri. 21st Aug 2026, (Source: www.indiantextilemagazine.in)
Sanathan Textiles Limited has commenced commercial production from its expanded Technical Textiles yarn manufacturing capacity at its Silvassa facility. The expansion doubles the Company’s Technical Textiles yarn capacity from 9,000 MTPA to 18,000 MTPA and takes total installed capacity across all three yarn verticals for both locations (Silvassa and Punjab) to 488,250 MTPA. The expanded capacity strengthens Sanathan Textiles’ integrated manufacturing platform and provides capacity to address evolving market requirements across a range of specialised applications. Technical Textiles is a high-growth segment, with Sanathan Textiles’ yarns used across automotive, agriculture, defence, infrastructure, roads and railways, sportswear, healthcare and industrial safety applications, as well as protective and strategic end-uses such as fire-retardant wear. With over three decades of operations, today, Sanathan Textiles is among the leading yarn manufacturers India that has strong presence across three yarn segments namely that are polyester filament yarns, cotton yarn and yarns for technical textiles, thereby contributing significant value to the textile ecosystem. The Company has its strategically located manufacturing facilities in Silvassa and Punjab. These facilities are technologically advanced with automated warehousing transportation and package handling systems.
Sanathan Textiles has a diverse product portfolio catering across various sectors with more than 3,200 yarn products and nearly 50,000 SKUs. The Company has over 7,000 customers, 400+ distributors across India and exports to around 27 countries.
