Cotton Market Weekly: Domestic Trends & Global Moves
Domestic Markets
Shankar-6 eased ₹100 to ₹55,300/candy as muted demand, thin export parity, and steady arrivals kept mills cautious. CAI reported daily arrivals at 7,400 bales (cumulative: 3.04 crore bales). CCI sold 6,900 bales on Friday.
South India’s yarn market stayed weak under higher U.S. tariffs, with Tirupur seeing negligible trades. Mills may cut rates further next month as India’s $10.8 bn U.S. textile exports face up to 63.9% duties, pressuring hubs like Tirupur, Noida, Ludhiana, and Bengaluru.
India extended duty-free cotton imports till Dec 2025, easing mill costs but raising procurement pressure on CCI beyond its 99 lakh bale target. Overall sentiment remains negative for domestic prices.
International Markets
ICE cotton futures fell, weighed by a stronger dollar and soft grain markets. Lower oil prices, making polyester cheaper, also capped cotton.
WTI crude slipped 0.9% to $64/bbl amid weak U.S. demand and OPEC+ supply outlook. Cotton’s narrow 65.50–68.50c range signals possible downside below 65.50c.
USDA reported net cotton sales of 179,300 RB (2025/26) and exports of 112,700 RB, with commitments down 23% YoY at 30% of USDA’s target.
CFTC’s On-call report flagged downside risk: the record 2.3:1 purchase-to-sales ratio suggests any futures rebound may trigger farmer fixation, amplifying selling pressure.
