As we bid farewell to the year 2025 and welcome the New Year 2026, we take this opportunity to express our sincere gratitude to all our cotton friends for their valuable support and cooperation throughout the past year.
With your firm backing and active participation, Gujcot Trade Association was able to serve the trade effectively and move forward with confidence. Your trust and encouragement have been the cornerstone of our efforts, and we are truly thankful to each one of you for your continued support.
As we step into the New Year 2026, we look forward to your same kind cooperation and association, which will further strengthen our collective growth and success.
On behalf of Team Gujcot, we wish you and your families a prosperous, healthy, and profitable New Year. May 2026 bring new opportunities, stability, and success to the entire cotton fraternity.
Warm regards,
Team Gujcot Trade Association
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.
We hope it will be useful to all the stake holders of Textile Value Chain.
Market Review – First Quarter Summary
Detailed Quarterly Market Review (Global)
NY December contracts witnessed a gradual decline from 65.50 to 61.50 cents before expiry. NY March followed a similar trend, falling from 67.50 to 63.00 cents by November. Thereafter, some consolidation was seen, with support emerging near 63.50 cents; however, the market failed to cross the 65.00 cents level till the end of the quarter. On-call settlement pressure and farmer selling consistently created resistance around the 65-cent zone. Overall, the market traded in a very narrow range of just 4 cents during the entire quarter.
All monthly WASDE reports during the quarter failed to provide any significant directional trigger, keeping the market largely neutral. Due to the federal shutdown, export data releases were delayed, but overall U.S. export sales and shipments remained broadly in line with last year.
China is expected to produce more cotton than last year. Despite this, Chinese futures showed a strong upward movement toward the end of the quarter, indicating firm domestic sentiment.
Detailed Quarterly Market Review (India)
In India, arrivals before Diwali in October were limited. November rains caused damage to a large portion of ready harvest. This rain-damaged kapas was unsuitable for storage and also failed to meet C.C.I. procurement parameters. As a result, there was pressure on cotton prices in November, and spot rates declined below ₹52,000. After 20 November, C.C.I. started active procurement, which provided strong support to the market. In December alone, C.C.I. procured a record 50 lakh bales, taking cumulative procurement in November and December close to 64 lakh bales. With this support, cotton prices recovered and crossed ₹54,000 by the end of the quarter.
Indian textile mills experienced a significant advantage during November, as cotton procurement costs remained low and highly competitive. The steady flow of fresh arrivals during this period enabled mills to comfortably cover their immediate raw material requirements. In addition to domestic procurement, mills also actively utilized the window of duty-free imports, which further strengthened their inventory positions and helped optimize overall input costs.
The first quarter as a whole proved favorable for spinning mills. Unseasonal rains during November, while disruptive to harvesting and quality in certain regions, indirectly supported mill margins. The rain-induced pressure on prices allowed mills to secure cotton at discounted levels, improving cost efficiency. Adequate domestic supply, combined with imported cotton, ensured smooth operations and reduced procurement risk throughout the quarter.
On the ginning side, rain damage led to elevated private pressing activity up to November, as market participants rushed to process arrivals before further quality deterioration. During this phase, ginners enjoyed reasonable margins and favorable trading opportunities. However, as the season progressed into December, private ginners gradually stepped back from active participation. Pressing activity during this period was largely dominated by the Cotton Corporation of India (C.C.I.), which emerged as the primary player in market operations.
Despite the slowdown in private ginning during December, overall market balance remained intact. Mills continued to benefit from comfortable inventory levels, sufficient domestic availability, and continued access to duty-free imports. The presence of C.C.I. helped stabilize supply and prevented major disruptions in the value chain.
Due to tariff-related uncertainties and broader global macroeconomic pressures, the Indian rupee witnessed significant volatility during the quarter. The currency depreciated sharply from around ₹88.50 to nearly ₹91.00 per US dollar, before recovering to below ₹90 following timely intervention by the Reserve Bank of India. The weaker rupee helped Indian cotton maintain its export competitiveness in the global market, partially offsetting higher domestic prices. Indian basis levels moved in tandem with currency fluctuations and the domestic cotton rally seen in December. The basis initially opened strong at around 1,450 points over nearby New York futures in October, but eased considerably to nearly 915 points in November as arrivals improved and prices softened. Toward the end of the quarter, supported by firmer domestic prices and renewed currency stability, the basis recovered and stabilized around 1,200 points over New York March futures.
In summary, the quarter remained relatively supportive for the cotton trade ecosystem. Mills emerged as the key beneficiaries due to favorable procurement conditions and strong margins, while ginners found good opportunities until November before activity moderated. Adequate supply, competitive pricing, and supportive policy measures collectively ensured a stable and productive quarter for the industry.
Hope for the best.