Most cotton benchmarks rose over the past month, led by the December NY/ICE contract moving from 75 to 82 cents/lb.
The A Index, China and India also gained, while Pakistan prices eased after holding earlier increases longer than other markets.
USDA revisions lifted 2026/27 global production and mill-use, with spinners and sourcing teams watching China weather, reserves and import demand.
Cotton Incorporated said in the letter that official Karachi Cotton Association price publication had faced issues since December and resumed on June 6. It reported Pakistani prices were near 94 cents/lb, or 21,500 PKR/maund, through the first half of June, before falling to about 78 cents/lb, or 17,800 PKR/maund.
The letter also cited the July US Department of Agriculture (USDA) report, which raised 2026/27 global cotton production by 1.2 million bales to 117.3 million and mill-use by 190,000 bales to 122.0 million. It said the 2026/27 global trade projection was unchanged at 43.3 million bales, with no import or export revisions above 100,000 bales for that season.
For the price outlook, Cotton Incorporated attributed the latest market movement to several China-related factors, including reports of progress in US-China discussions on tariff reductions and agricultural trade. It also cited extreme heat in Xinjiang, concerns over boll drop, and forecasts from the USDA and the China Cotton Association indicating that Chinese cotton planting is down by about 4 per cent. However, the organisation noted that releases from China’s cotton reserves could help moderate the country’s import demand. Meanwhile, improved monsoon coverage has eased drought concerns in India, while weather conditions in West Texas have become increasingly dry.
Fibre2Fashion News Desk
