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.
ICE Futures (US Cotton)
During the second quarter of 2026, ICE cotton futures displayed a mixed trend with an initial phase of weakness followed by a strong recovery towards the end of the quarter.
At the beginning of January, both ICE March and May futures traded in a relatively stable range, with ICE May hovering around 65.50–66.50 cents and ICE March near 64.00–65.00 cents. However, as the month progressed, the market faced downward pressure, primarily due to weak demand sentiment and profit booking, leading to a gradual decline in prices.
By early February, the market reached its quarterly lows, with ICE March falling close to 61.00 cents and ICE May around 63.00 cents. This decline reflected subdued buying interest and cautious market participation.
From mid-February onwards, the market began to recover. Improved export demand, stronger shipment data, and supportive macro factors such as firm crude oil prices contributed to renewed buying interest. ICE March futures rebounded to the 63.00–64.00 range, while ICE May showed a stronger upward momentum.
In March, the bullish sentiment strengthened significantly. ICE May futures surged sharply, crossing the 68.00 level and eventually closing near the 70.00 mark by the end of the quarter. This rally was driven by short covering, tightening supply expectations, and sustained export demand. ICE March also recovered but remained comparatively subdued as it approached expiry.
Overall, the quarter can be characterized by:
ICE May emerged as the stronger contract, reflecting forward demand optimism, while ICE March remained relatively limited due to its nearing expiry.
GUJCOT Daily Spot Rate (S/6 Cotton)
Starting at ₹53,900 in early January, prices rose steadily to ₹55,900 mid-January, then corrected to ₹54,100 by late February. March saw recovery, closing at ₹58,000.
The Indian physical market remained steady, supported by strong procurement at the MSP by the CCI. Up to February, the CCI had procured approximately 105 lakh bales.
For the first time in history, C.C.I. opened sales in February.
After the completion of C.C.I.’s procurement, the Indian physical market witnessed a strong upward movement, supported by robust yarn demand. Cotton yarn demand surged amid the ongoing conflict involving Iran, which led to a sharp rise in crude oil prices. As polyester is derived from petrochemicals, the increase in crude oil prices resulted in a significant jump of around 30% in polyester prices, further boosting demand for cotton yarn.
Strong yarn demand and a depreciating rupee have provided good parity to mills for yarn exports. Additionally, basis players have taken the opportunity to buy from C.C.I., resulting in a strong surge in cotton prices.
C.C.I. has already sold 44 lakh bales of current season cotton before the completion of the quarter.
Indian Basis (Jan–Mar 2026)
During January and February, the Indian basis remained elevated, ranging between 1,200 and 1,500 points over the nearby NY futures. Strong support from MSP procurement kept the Indian physical market stable, even as NY futures continued to trend downward.
However, sentiment shifted in March, with NY futures witnessing a sharp rise and the rupee depreciating. This combination led to a significant narrowing of the basis, bringing it down to around 650 points over the nearby futures.
USD-INR Exchange Rate
Hope for the best.