Cotlook Index: 15-09-2026
94.65 (-1.50)
ICE cotton falls further on weak demand, seasonal pressure
Wednesday, 16th Sep 2026, (Source: www.fibre2fashion.com)
Insights: ICE Cotton stays under pressure as mills cut buying above 80 cents and US new-crop harvest arrivals add near-term supply pressure. December 2026 settled at 84.48 cents, down 374 points in three sessions and about 9.3 per cent over recent 10-session period. Crude oil supports cotton against polyester, while a stronger dollar, weak China futures and Middle East shipment disruptions weigh on trade.
ICE Cotton closed mixed yesterday, but pressure persisted in the active months for a third consecutive session. Fundamental pressure is now coming largely from the demand side. Consumer industry reduced purchases at prices above 80 cents per pound. Attention is also increasing on seasonal harvest pressure. This is the period when US producers begin bringing new-crop cotton to the market. The most active December 2026 contract settled at 84.48 cents, down 0.07 cent, taking the cumulative decline over the past three days to 374 points. However, the October 2026 contract gained 0.46 cent yesterday. This was the lowest level since August 14. Despite the relatively small daily decline, the market’s technical trend remained weak. Volume stood at 62,704 contracts, compared with 64,121 contracts traded on Monday. Activity therefore remained healthy, although it was slightly lower than in the previous session. The current correction continues to show substantial market participation. Open interest (OI) remains at very elevated levels and close to historical records. Monday’s OI was around 380,251 contracts and declined only marginally. Such a high OI is significant because its future direction will help explain the nature of the current decline. According to market analysts, when cotton moved above 80 cents, spinning mills reduced purchases and began waiting for lower prices. Textile mills are major buyers of physical cotton, so weaker mill buying can put pressure on both futures and physical markets. Attention is also increasing on seasonal harvest pressure. This is the period when US producers begin bringing new-crop cotton to the market. As the availability of harvested cotton increases, mills and merchants have more purchasing options and less urgency to buy at elevated futures prices. This can exert pressure on prices in the near term.
On the other hand, higher crude oil prices are providing some support to cotton through the polyester-substitution channel. More expensive oil raises the cost of producing polyester, potentially improving cotton’s competitiveness against synthetic fibre. However, this support has so far been insufficient to fully offset demand weakness and harvest pressure.
The US dollar also remains a negative external factor for cotton. A stronger dollar makes dollar-denominated commodities more expensive for overseas buyers, potentially adding further pressure on US cotton export demand.
Crude oil rose sharply by around 4.4 per cent. The rally was linked to continuing tensions in the Middle East and concerns over energy supply disruptions. Higher oil prices offer cotton some competitive support against polyester, but they also raise transportation, ginning, processing and broader textile supply-chain costs.
The geopolitical situation is also becoming increasingly important for US cotton exports. Reports indicate disruptions to exports and shipments in the Middle East, with some deliveries affected. If trade-route disruptions persist for an extended period, freight costs and uncertainty in international cotton trade could increase.
China’s market is also sending weak signals. ZCE Cotton declined for a fifth consecutive session and has fallen in nine of the past 10 sessions, with only one session closing almost unchanged. January ZCE Cotton has dropped by around 6.1 per cent over the past 10 sessions, while ICE December 2026 has fallen by approximately 9.3 per cent. In recent sessions, the difference in the pace of decline between the two markets has narrowed as selling pressure has intensified in Chinese futures as well.
China State Reserve auction activity continued, although the sell-through rate eased slightly on Tuesday. A total of 8,017 tonnes, or around 35,274 bales, was offered, of which 7,754 tonnes, or approximately 34,117 bales, was sold. This represented a sell-through rate of around 97 per cent.
ICE deliverable cotton stocks also remain an important indicator. As of September 14, certified stocks of No. 2 Cotton stood at around 38,462 bales. As the market moves further into the new-crop delivery period, the level of deliverable stocks will continue to be closely watched.
Overall, ICE Cotton is currently caught between harvest and demand pressure on one side, and crop concerns, high crude oil prices and China State Reserve buying on the other. December 2026 stands at 84.48 cents, down 374 points over three sessions and 9.3 per cent over the recent 10-session period. The key signals ahead will be whether physical and futures demand returns around the 84 cents level, when speculative OI begins to unwind, and when the Chinese market starts to stabilise. This morning (Indian Standard Time), ICE cotton for December 2026 was trading at 84.68 cents per pound (up 0.20 cent), cash cotton at 77.35 cents (up 0.46 cent), the October 2026 contract at 81.10 cents (up 0.46 cent), the March 2027 contract at 87.24 cents (up 0.25 cent), the May 2027 contract at 88.59 cents (up 0.21 cent), and the July 2027 contract at 88.20 cents (up 0.16 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India's DGFT to launch centralised system for faceless trade handling
Tuesday, 15th Sep 2026, (Source: www.fibre2fashion.com)
India’s commerce ministry has decided to establish a Central Processing Department (CPD) within the Directorate General of Foreign Trade (DGFT) to operate a faceless trade facilitation system for exporters and importers. The planned system will centralise the processing of trade-related applications and move towards a faceless, paperless and jurisdiction-free model. The change is relevant for textile and apparel exporters, importers and sourcing teams managing regulatory approvals.
Insights: Commerce ministry will create a Central Processing Department in DGFT to handle trade-related applications for exporters and importers.The faceless system is designed to make processing paperless and jurisdiction-free, supporting faster and more transparent approvals.
Fifty-three DGFT officers have been moved to the unit, which is slated for launch in late October 2026. According to a DGFT office memorandum, the CPD will function as the central unit for processing trade-related applications and will be based in the Central Licensing Area in Delhi. As part of the new set-up, 53 DGFT officers from Delhi and regional centres have been posted or transferred to the CPD, including five Joint DGFTs, 10 Deputy DGFTs and seven Assistant DGFTs, the media reports said.
The memorandum said the initiative aims to reduce processing times, improve transparency and support ease of doing business for exporters and importers.
The system is proposed to be formally dedicated to the nation during the second half of October 2026.
India's textile & apparel exports grow 6.39% in August
Wednesday, 16th Sep 2026, (Source: www.fibre2fashion.com)
Insights: India's textile and apparel exports grew 6.39 per cent YoY to $3.119 billion in August 2026, led by a 13.03 per cent rise in textile shipments, while apparel exports fell 2.74 per cent.
April–August exports slipped 0.24 per cent to $15.077 billion, with apparel down 9.10 per cent and textiles up 6.94 per cent. Raw cotton and cotton waste imports surged 67.67 per cent YoY in August.
India’s textile and apparel (T&A) exports grew 6.39 per cent year on year (YoY) in August 2026, as a strong increase in textile shipments more than offset a decline in apparel exports. Textile exports rose 13.03 per cent during the month, while apparel exports fell 2.74 per cent. However, cumulative textile and apparel exports during April–August 2026 remained 0.24 per cent lower YoY. In August 2026, India’s textile and apparel exports increased to $3.119 billion from $2.931 billion in August 2025, according to an analysis by the Confederation of Indian Textile Industry (CITI). Textile exports climbed to $1.918 billion from $1.697 billion, while apparel exports declined to $1.201 billion from $1.235 billion a year earlier.
Category-wise, exports of cotton yarn, fabrics, made-ups and handloom products increased 13.79 per cent YoY to $1,121.03 million during August. Exports of man-made yarn, fabrics and made-ups rose 9.92 per cent to $446.51 million. Exports of jute manufactures, including floor coverings, declined 19.39 per cent to $27.60 million, while carpet exports increased 5.38 per cent to $125.60 million. Handicrafts excluding handmade carpets recorded the strongest growth, surging 29.63 per cent to $197.29 million.
On a cumulative basis, India’s textile and apparel exports declined marginally by 0.24 per cent YoY to $15.077 billion during April–August 2026, compared with $15.114 billion in the corresponding period of the previous year. Apparel exports fell 9.10 per cent to $6.150 billion, while textile exports increased 6.94 per cent to $8.928 billion.
Within textiles, exports of cotton yarn, fabrics, made-ups and handloom products rose 6.73 per cent to $5,193.29 million during April–August. Exports of man-made yarn, fabrics and made-ups increased 2.76 per cent to $2,050.29 million. Exports of jute manufactures declined 15 per cent to $136.30 million, while carpet exports grew 1.24 per cent to $630.77 million. Handicrafts excluding handmade carpets surged 30.29 per cent to $917.14 million.
The sector’s share of India’s total merchandise exports declined sharply. T&A accounted for 7.12 per cent of total exports in August 2026, compared with 8.44 per cent in August 2025. During April–August, its share fell to 6.98 per cent from 8.25 per cent a year earlier, as overall merchandise exports grew faster than textile and apparel shipments.
As for the imports, raw cotton and cotton waste imports surged 67.67 per cent YoY to $213.36 million in August 2026 from $127.25 million a year earlier. In contrast, imports of textile yarn, fabrics and made-ups declined 8.12 per cent to $208.88 million from $227.35 million.
During April–August 2026, imports of raw cotton and cotton waste increased 57.17 per cent to $802.34 million from $510.48 million. Imports of textile yarn, fabrics and made-ups, meanwhile, declined 2.49 per cent to $1.054 billion from $1.080 billion in the corresponding period of the previous year.
During fiscal 2025–26 (April–March), India’s textile and apparel exports declined 2.21 per cent YoY to $35.799 billion. Textile exports fell 2.86 per cent to $20.027 billion, while apparel exports eased 1.36 per cent to $15.772 billion. The latest April–August figures indicate that stronger textile shipments have helped narrow the overall sectoral decline in the current fiscal, although apparel exports remain under pressure.
Drought Hits 53% of India
Wednesday, 16th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Impact of El Niño: Drought-like conditions in 53% of the country; concerns over Kharif and Rabi sowing
A rainfall deficit during the final phase of the southwest monsoon has led to drought-like conditions across large parts of the country. According to the India Drought Monitor, approximately 53.2% of the country's total land area is affected by some level of drought; a week ago, this figure stood at around 46%. The lack of rain has placed stress on standing Kharif crops, while concerns are also mounting regarding adequate soil moisture for the upcoming Rabi sowing season.
Assessments by IIT Gandhinagar’s Water and Climate Lab up to September 9 indicate that 33.4% of the country is experiencing moderate or worse drought, 15.4% is facing severe or worse drought, and 3.8% is under extreme drought conditions. Approximately 0.1% of the area is in the grip of exceptional drought. Data from the India Meteorological Department (IMD) shows that, as of Tuesday, 41% of the 734 monitored districts recorded below-normal rainfall, while 6% experienced a large rainfall deficit. Overall, rainfall across the country during this monsoon season has been about 15% below normal. In terms of agriculture, Maharashtra is among the most affected states, with 85.2% of its area reportedly affected by some level of drought. Severe drought conditions have been recorded in 25.93% of the state, and exceptional drought in 17.20%. Additionally, 11.91% of Chhattisgarh, 5.22% of Madhya Pradesh, and 4.92% of Uttar Pradesh fall into the severe or exceptional drought categories. The rainfall deficit has raised concerns regarding the yields of Kharif crops such as arhar (pigeon pea), urad (black gram), and soybean. Drought-like conditions in parts of Maharashtra, Telangana, and Karnataka pose a challenge for farmers. A lack of soil moisture could adversely affect the sowing and early growth stages of Rabi crops.
Telangana Rain Deficit, Khargone Rain Threat
Wednesday, 16th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Rain Deficit in Telangana; Threat of More Rain Looms Over Khargone
Farmers' crops in Telangana are suffering due to a lack of rainfall, while in Khargone, Madhya Pradesh, the prospect of further rain—following recent downpours—has heightened farmers' anxiety. Weather conditions in both regions continue to pose challenges for agriculture.
P. Narsi Reddy, a 66-year-old farmer from Telangana, had a paddy crop ready for harvest on five acres of land. Due to the lack of rain and the absence of a reliable irrigation source, he abandoned the crop, leaving it for livestock to graze on. He was also forced to leave another four acres of land, prepared for vegetable cultivation, unplanted. According to Narsi Reddy, the expected yield from an acre of cotton this season is merely one quintal, whereas the usual output ranges from 10 to 11 quintals. Narsi Reddy mentioned that the Agriculture Department had advised against cultivating paddy without a dependable water source. He noted that farmers had anticipated rainfall based on forecasts from the Meteorological Department. He revealed that his outstanding bank loan has reached approximately ₹8 lakh. The farmer stated that loan waiver schemes—implemented by the previous BRS government (with a limit of ₹1 lakh) and the current Congress government (with a limit of ₹2 lakh)—failed to provide him with complete debt relief.
Duggi Krishna, a farmer from Maddipalli village in Khammam district, has cultivated cotton on three acres. The crop, currently in the boll-formation stage, had begun to wither due to the lack of rain, though recent light showers have provided some relief. Krishna purchased seeds and other agricultural inputs from private dealers; consequently, he is compelled to sell his produce to those same dealers, despite the higher prevailing market rates. Meanwhile, Vajja Rama Rao pointed out that while farmers were advised to cultivate rain-dependent crops, the necessary seeds were not made available to them. On the other hand, the rain has currently subsided in Khargone. Bright sunshine on Wednesday morning caused the water accumulated in the low-lying areas of the fields to begin receding. The district has received 29.1 inches of rainfall so far, against an annual average of 32.6 inches. Khargone and Gogawan have already met their average rainfall quota. According to the Meteorological Department, rainfall is likely in western Madhya Pradesh starting September 17. Farmers fear that renewed heavy rain could increase damage to cotton and soybean crops. Persistent moisture is also leading to pest issues in cotton crops in some areas.
EURATEX urges EU to put textile competitiveness at centre
Wednesday, 16th Sep 2026, (Source: www.fibre2fashion.com)
Insights: EURATEX has urged the European Commission to turn pledges on fair trade, simpler rules and strategic autonomy into action for textiles. It called for stronger customs enforcement and import monitoring amid the EU's €1 billion ($1.154 billion) a day trade deficit with China, dedicated industry support in the next Multiannual Financial Framework (MFF) and recognition of technical textiles in Europe's defence
EURATEX, the European Apparel and Textile Confederation, welcomes State of the Union Address by European Commission President, Ursula von der Leyen, and in particular her recognition of Europe’s need to rebalance unfair trade, cut red tape, and strengthen its industrial and strategic autonomy. EURATEX now calls on the Commission and Member States to translate these commitments into concrete action for the textile and apparel value chain.
At the same time, we regret that industrial competitiveness received comparatively limited attention in an otherwise wide-ranging address. EURATEX urges the Commission to match today’s political commitments with an equal sense of urgency on industrial competitiveness, and to place manufacturing sectors, such as textiles, more firmly at the centre of its agenda in the months ahead. "Europe cannot build a strong defence, lead the green and digital transitions, or protect its social model on a weakening industrial base. Competitiveness is not just one chapter of the European project – it is the foundation all the others are built on; when we get that right, everything else becomes possible.”, states Dirk Vantyghem, director general, EURATEX.
On trade, EURATEX shares the President’s assessment that the EU’s growing trade deficit with China – now standing at €1 billion (~$1.15 billion) a day – has reached a tipping point. The textile and apparel sector has been on the front line of this “second China shock” for years, and we advocate the Commission to move swiftly from dialogue to concrete trade-defence measures, including stronger customs enforcement and imports monitoring for textile products.
EURATEX also welcomes the pledge to cut administrative burden and forge a “pact against gold-plating” with Member States. Textile companies, the vast majority SMEs, are disproportionately affected by overlapping and often diverging national implementation of EU rules, and genuine simplification would meaningfully improve their competitiveness.
Looking ahead to the next Multiannual Financial Framework (MFF), EURATEX stresses the need of dedicated support for the textile industry, reflecting its role as a strategic manufacturing sector for Europe's green, digital, and defence transitions, and ensuring the sector is not left without targeted instruments as EU funding priorities are reshaped.
EURATEX commends the President’s announcement of a new “European Instrument for Strategic Enablers” to strengthen European defence capabilities. Technical and defence-related textiles – from protective equipment and ballistic materials to smart textiles for soldier systems – are an integral part of Europe’s defence industrial base, and we stand ready to ensure the sector is fully recognised in this effort. On international partnerships, we note with interest the President’s proposal to deepen the EU-Canada relationship through an “Alliance for the Future”. EURATEX has recently signed Memoranda of Understanding with its Canadian counterparts, the Canadian Textiles Industry Association (CTIA) and the Canadian Apparel Federation (CAF) and is well-placed to build on this cooperation as EU-Canada industrial ties are strengthened.
Finally, EURATEX supports the announcement of a new Mediterranean Youth Skills and Jobs initiative. We are already active in this domain through our role in the Pact for Skills and have ongoing engagement across the Mediterranean region. Therefore, we are ready to contribute with our expertise to ensure the initiative delivers meaningful opportunities for young people in the textile and apparel value chain.
