Dear All Cotton Friends,

In our mission to give Daily Spot Rate Team Gujcot is getting valuable support from Gujcot broker’s panel. We appreciated their humble service to the trade. Gujcot Team is giving daily closing of Indian and foreign futures rates.

In this report we have provided Following Rates during the month.

• Daily Physical Spot Rate

• MCX Cotton Daily Closing Rate

• USD-INR Exchange Rate Closing

• Cotlook Index

• ICE Future Closing

• NCDEX Kapas Rate

• MCX Future Closing

• NCDEX and MCX converted into Rs. Candy Rate

We hope it will be useful to all the stake holders of Textile Value Chain.

• During the last quarter of the season, NY Futures remained stuck in a narrow closing range of 65.50 to 68.80 cents per lb. The Cotlook Index also stayed confined between 76.90 and 79.95 cents per lb. Several bearish factors weighed on the market, including the threat of U.S. tariffs, higher WASDE projections, heavy On-Call purchases, comfortable stock-to-use ratios, and expectations of big crops in Brazil and China. These factors prevented any significant upward movement. However, the 66-cent level acted as strong support, where buying and mill fixations provided some stability. Overall, both NY Futures and the Cotlook Index traded within very narrow ranges.
• As of July 31st, U.S. export sales had easily surpassed the target with a surplus of 11.8 million bales, though carry-forward commitments remained low. Despite negligible buying from China, the U.S. successfully found alternative markets.
• The latest WASDE report projects U.S. 2025-26 cotton production slightly higher at 13.2 million bales, with no changes in consumption, exports, or ending stocks, keeping the stocks-to-use ratio just above 26% and the season-average upland price steady at 64 cents per pound. Globally, production, consumption, and trade are projected higher, with gains in China, India, and Australia offsetting declines in Turkey, Mexico, and West Africa. Consumption growth is mainly expected in China and Vietnam. With beginning stocks revised lower due to higher prior-year use in China, 2025-26 world ending stocks are reduced by nearly 800,000 bales to 73.1 million—the lowest in four years.
• In the Indian physical market, a liquidity crunch was felt after arrivals began shrinking in July. Indian spinners rushed to cover requirements through CCI auctions. Responding to strong demand, CCI gradually increased its sale prices, and traders also bought good quantities during the uptrend. However, the higher rates could not sustain, as tariff threats pulled the market down. From August 13th, the Indian government exempted cotton from import duty, which triggered a sharp downturn. Large corporate mills quickly covered huge import volumes sufficient until December. Reacting to the pressure from imports, CCI reduced prices and offered bulk discounts, resulting in strong sales. By the end of the season, CCI was left with only about 11 lakh bales to sell.
• The Indian monsoon progressed well, though some crop damage in North India reduced yield potential. In late September, heavy rainfall in Maharashtra and southern regions posed risks of delays and damage.
• Overall, India’s sowing is slightly lower this year, mainly due to acreage losses in Central India, partially offset by gains in the South. Total cotton sowing stands at 109.98 lakh hectares, compared with 112.95 lakh hectares last year—a decline of 2.97 lakh hectares. Gujarat sowing has dropped to 20.82 lakh hectares from 23.68 lakh hectares last year, a decline of 2.86 lakh hectares.
• The Indian rupee weakened sharply amid U.S. tariff impositions that hurt Indian exports, trading between 85.31 and 88.79.
• The Indian basis remained in the range of 12.46 to 17.47.
• With the new season approaching, arrivals have already begun across all cotton-growing regions. We extend best wishes to all stakeholders for a happy, prosperous, and rewarding new season.
• Let's hope for the best.