EUR/US$: 1.1578
U.S. Cotton Collapses on Wednesday
Barchart: Cotton futures suffered a sharp Wednesday sell-off, closing down 91-363 points across the board - October fell 363 points to 86.38 cents, December 262 points to 88.93 cents, and March 238 points to 91.30 cents per pound, even as crude oil ticked only slightly higher and the dollar softened. The Seam reported 1,166 bales traded September 1 at an average 89.24 cents, the Cotlook A Index had risen 100 points to 102.30 the day before, and ICE certified stocks slipped 86 bales to 63,092. The Adjusted World Price was raised another 190 points to 71.52 cents.
Source: Barchart
Calcot: U.S. Cotton Futures Suffer Sharp Wednesday Sell-Off
Calcot (Cindy Walters): Cotton had one of its trademark big moves Wednesday, this time to the downside - December settled at 88.93 cents (down 262 points), with an intraday low of 87.56 just a point shy of limit-down; October through July-27 fell 199-363 points, with lows within 3-4 cents of the 400-point limit. Volume of 107,487 contracts was the 31st-highest ever, part of a historic year - 26 of cotton's 47-ever 100,000-plus-contract sessions have come in 2026. Open interest hit a fresh third-highest level ever (383,730 contracts) just before the sell-off, having risen in 21 of the last 23 sessions. Unofficial chatter blamed part of the drop on speculation that the September 24 Trump-Xi meeting could be postponed into 2027, though nothing has been confirmed; China's ZCE cotton fell 1.3%, its biggest daily drop in six weeks. China's State Reserve logged its 33rd straight sold-out auction, selling 8,004 tonnes (about 35,217 bales) and over 1.16 million bales for the 33-day run. Crude oil hit a fresh contract high of $92.29 before settling at $91.01 as the U.S.-Iran conflict, now in its seventh month, escalated further.
Source: Calcot
Brazil: Mato Grosso Cotton Harvest Nears 89% Completion
Revista Cultivar (Ampa): Cotton harvesting in Brazil's Mato Grosso had reached 88.66% of planted area by August 28, with hot, dry weather speeding up fieldwork, according to the state's cotton growers association Ampa. Yields are running at 400-plus arrobas per hectare in some areas, with gins reporting a favorable 40-45% fiber turnout. Ampa flagged the boll weevil as a continuing threat, urging growers to destroy crop stubble, and warned that rain forecast for the coming weeks could stain exposed fiber and delay harvest on the remaining area - so it's pushing producers to finish fieldwork, protect fiber quality and keep up bale transport and ginning.
Source: Revista Cultivar
India: Soaring Cotton Prices Put Textile Mills Under Pressure
The Hindu: Cotton yarn demand has been reviving for about five months, with Tamil Nadu mill capacity utilisation now above 90% and stocks low - most mills hold less than two months of cotton, said SIMA chairman Durai Palanisamy. But prices have jumped sharply since mid-March, tracking ICE futures more closely: ex-gin cotton in Coimbatore, which traded between ₹51,700 and ₹57,000 a candy from October to end-March, hit ₹70,000 a candy on September 2. The Indian Cotton Federation points to stronger Chinese demand and lower expected U.S. and Chinese production as drivers, while yarn prices are rising in step and exporters say they need to lean on international markets since domestic apparel demand can't absorb all the yarn. Industry figures note Indian cotton remains cheaper than international prices and are looking to the Cotton Corporation of India, which holds large MSP-procured stocks, to help stabilise the domestic market.
Source: The Hindu
Mozambique Targets 60,000 Tonnes of Cotton Production a Year
Club of Mozambique (Lusa): Mozambique's government wants to lift cotton production from the current 20,000 tonnes to 60,000 tonnes a year, government spokesperson Inocencio Impissa said after Tuesday's Cabinet meeting, which approved new sector regulations. Output has collapsed roughly 90% from about 180,000 tonnes in 2011-2012, hitting jobs across the sector; the new rules cover production, marketing, transport, storage and trade of cotton, aiming for a more transparent value chain and more private investment. The government expects the higher output to generate around $65 million (€56 million) in export revenue, over €1.4 million in extra tax revenue, and to restore roughly half the sector's lost jobs.
Source: Club of Mozambique