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U.S. Cotton: Cotton Faces Losses on Thursday
Barchart: Cotton futures closed sharply lower on Thursday, down 147-302 points across the front months, even as crude oil rose and the dollar index fell. The week's export sales report showed just 27,525 RB of 2026/27 upland sales (down 88.8% y/y), with India and Vietnam the main buyers and no new-crop sales; shipments were 189,480 RB (+22.5% y/y), led by Vietnam and India. July Census data showed cotton exports at a 4-year high of 1.16 million bales. The Seam sold cotton at 87.00 cents/lb on September 2, the Cotlook A index eased to 100.75, and ICE certified stocks held steady at 63,092 bales.
Source: Barchart
U.S. Cotton: Calcot Daily Market Comment - Three-Day Sell-off
Calcot: Thursday marked a third straight day of losses for ICE cotton, with December settling at 86.45 cents (-248 points), down 669 points over the three sessions despite Monday's contract high. Volume was heavy at 92,253 contracts, and open interest slipped back from its third-highest level in the market's history. Calcot points to weak demand behind the sell-off rather than any single trigger, calling Thursday's export report "pitiful" even for this time of year. China's State Reserve completed its 34th consecutive sold-out auction (8,026 tonnes, about 35,314 bales), taking the running total to roughly 1.2 million bales, about half of it US-origin. Higher crude prices are seen as supportive for cotton longer-term, since pricier synthetic fibers make cotton more competitive against polyester and other man-made alternatives, though export demand has yet to reflect that shift.
Source: Calcot
Brazil: Record Yield Expected to Offset Smaller 2026/27 Area
USDA (GAIN): Brazil's cotton area for 2026/27 is estimated at 2.0 million hectares, down 4.3% from last season, as high interest rates, elevated costs and price volatility pushed some growers - mainly in Mato Grosso, Minas Gerais and Tocantins - toward second-crop corn instead. Even so, record productivity is expected to nearly offset the smaller area: yield is put at a national-record 2,003 kg/ha, leaving production at 18.4 million bales (4.0 million tonnes), just 1.8% below last season's 18.7 million bales. Harvest was 85% complete as of late August. Domestic consumption and exports are both expected to hold steady, helped by a favorable exchange rate and cotton's improved competitiveness against synthetic fibers, while tighter ending stocks could lend further support to prices.
Source: USDA FAS (GAIN)
Turkiye: USDA Cuts 2026/27 Production Forecast, Imports to Rise
USDA (GAIN): Turkiye's 2026/27 cotton production is forecast to fall to 495,000 tonnes (2.27 million bales) on a smaller planted area of 275,000 hectares - implying a yield of roughly 1,800 kg/ha. Consumption is seen slipping slightly to 1.5 million tonnes (6.89 million bales). Imports are forecast to rise to 1.1 million tonnes (5.05 million bales) as the US loses its position as Turkiye's top supplier, while exports are seen falling to 200,000 tonnes (919,000 bales). USDA notes the Turkish textile industry continues to face weaker demand from key export markets and pressure from an unstable lira, even as it keeps pushing for policy support on sustainability and biotechnology.
Source: USDA FAS (GAIN)
Pakistan: USDA Lowers Area and Production, Raises Import Forecast
USDA (GAIN): Pakistan's 2026/27 harvested cotton area has been cut to 1.85 million hectares, largely on lower plantings in Punjab as growers favor more profitable alternative crops. That takes the production forecast down to 4.9 million bales (480 lb), one of the lower per-hectare yields in the region. With domestic mill use expected to hold near 10 million bales, USDA raised its 2026/27 import forecast to 5.2 million bales to cover the shortfall.
Source: USDA FAS (GAIN)
Global: USDA Weekly Export Sales - Cotton
USDA: The official weekly export-sales report for the week of August 21-27 shows upland net sales of 27,500 RB for 2026/27, led by India and Vietnam (10,800 RB each), Bangladesh (5,200 RB) and Peru (2,000 RB), partly offset by reductions for South Korea and Hong Kong. Upland exports totaled 189,500 RB, mainly to Vietnam (77,300 RB), India (22,200 RB) and Pakistan (17,800 RB). Pima net sales added 1,800 RB, with exports of 4,600 RB led by Vietnam and India.
Source: USDA FAS
Pakistan: Textile Mills Losing Rs 10 Million Daily Amid Import Clearance Dispute
Bloom Pakistan: Pakistan's textile mills are losing more than Rs 10 million a day (roughly $36,000) after customs held up clearance of imported cotton in a dispute over Methyl Bromide, the fumigant required under the country's plant-quarantine rules. APTMA says 400-500 containers of imported cotton are stuck at port, threatening production schedules and export deliveries even as the sector's exports rose 8.07% y/y to $1.814 billion in July. The association is urging the government to restore fumigation clearance before losses and missed shipments mount further.
Source: Bloom Pakistan
Brazil: Cotton Body Urges Natural-Fibre Focus in Import Tax Debate
Fibre2Fashion: Brazil's cotton growers' association Abrapa is pushing Congress to weigh the domestic textile chain's competitiveness and the value of natural fibers as it finalizes MP 1,357/2026, the provisional measure setting import-tax treatment for low-value online purchases. Without approval by early September, the current zero rate on purchases up to $50 lapses and the prior 20% tax returns. Abrapa also backs a proposed CIDE-Textil amendment that would tax imported finished textiles on a sliding scale (2-10%) based on synthetic-fiber content, arguing Brazil - the world's fifth-largest textile industry and a major cotton exporter - is effectively subsidizing synthetic-fiber imports while its own natural-fiber sector carries the full domestic tax and regulatory burden.
Source: Fibre2Fashion
Brazil: Cotton Prices Rise as Trading Stays Limited
Fibre2Fashion: Brazil's CEPEA/ESALQ cotton index rose 3.83% in August to BRL 4.3648/lb, supported by firmer international prices, though trading stayed thin as buyers and sellers struggled to agree on price. August lint exports held up at 73,480 tonnes, with the average export price up 6.3% to 76.90 cents/lb. USDA now sees 2026/27 global consumption (26.8 million tonnes) outpacing production (25.6 million tonnes), tightening ending stocks to 15.2 million tonnes; Brazil is expected to remain the top exporter at 3.3 million tonnes on a production estimate raised 1.4% to 3.974 million tonnes.
Source: Fibre2Fashion