EUR/US$: 1.1234
U.S. Cotton: Futures Rally on Wednesday
Barchart: Cotton futures rallied on Wednesday, with front months up 94 to 102 points and deferred contracts 1 to 17 points higher, while crude oil and the dollar were nearly unchanged. The Seam sold 2,550 bales on October 20 at an average of 76.22 cents/lb, the Cotlook A Index rose 20 points to 91.15 cents, and ICE certificated stocks increased by 2,000 bales to 18,618. Dec 26 settled at 81.83 (+95), Mar 27 at 85.20 (+102) and May 27 at 86.84 (+98).
Source: Barchart
U.S. Cotton: Third Higher Close, Open Interest Tops 400,000 Contracts
Calcot – Cindy Walters: December settled at 81.83, up 95 points, for a three-day gain of 183 points and its highest close since September 28. It finished above its 10-, 20- and 100-day moving averages for the first time in three and a half weeks, with the next upside targets at 82.25 and 82.91 cents. Open interest set a seventh consecutive record at 401,293 contracts, the 26th of 2026, although open interest alone does not show which side has the stronger conviction. The U.S. harvest is ramping up, and several analysts expect a smaller crop than USDA's October estimate of 13.44 million bales. The Dec/March spread widened to a contract-high 337 points March premium, but December's relative weakness largely reflects liquidation ahead of delivery and should not be read as bearish for the whole board. Index fund rolls begin on October 29 (Rogers) and November 6 (Goldman Sachs). Crude oil fell for a third session as the U.S.–Iran war continued to threaten shipping around the Strait of Hormuz.
Source: Calcot
Brazil: Cotton Brazil Launches Anti-Microplastics Campaign at ICA Istanbul
Just Style: Cotton Brazil, an alliance of growers' association Abrapa, exporters' association ANEA and ApexBrasil, launched its "Hanging by a Thread" campaign at the ICA Trade Event in Istanbul on October 14–15, attended by about 600 delegates. The campaign aims to raise awareness of microplastics and their possible effects on health and the environment, to inform public policy and to promote wider use of natural fibers where technically suitable. Abrapa president Gustavo Piccoli said the goal is not to eliminate synthetic fibers but to encourage more conscious choices. Brazil arrived at the event after record lint exports of 3.37 million tonnes in 2025/26, up about 19% on the previous season.
Source: Just Style
U.S. Cotton: USDA Links Apparel Tariffs to U.S. Cotton Purchases
RFD-TV: USDA is developing a trade mechanism under the Great American Cotton Plan that would grant preferential tariff treatment to apparel made with U.S. cotton and textile inputs from countries that buy American cotton. The initial participants are Bangladesh, Indonesia, Cambodia and Malaysia. USDA would verify the purchases, and the Foreign Agricultural Service, which will take over the cotton tariff-rate quota process, plans to launch the mechanism in 2027. Purchase thresholds and tariff terms have not yet been released, so the final design will determine how much additional demand it creates for U.S. fiber.
Source: RFD-TV
Pakistan: Ginners Threaten Nationwide Shutdown After Tax Raids
Dawn – Amjad Mahmood: Pakistan's ginning sector faces a near-total shutdown after Federal Board of Revenue raids on gins in Sanghar, Tando Adam and Shahdadpur in Sindh, where officials reportedly broke locks and seized records without legal notice, prompting several factories to halt production. The Pakistan Cotton Ginners Association threatened to close all operating gins nationwide unless the actions stop, warning that the ongoing harvest is at risk. The industry cites a sales tax burden of 18–22% and high electricity costs; more than 100 gins became non-functional in 2025-26 alone, and in total over 500 gins, nearly 700 oil mills and 175 textile mills have closed.
Source: Dawn
China: Cotton Prices Range-Bound Under Pressure from Weak Demand
SunSirs: China's domestic cotton market in October has been supported by production costs but pressured by weak demand, with new-crop arrivals and gin hedging keeping prices range-bound. Spot 3128B lint stood at 17,365 yuan/tonne on October 20, down 0.25% since the start of the month. Commercial stocks rose by 369,400 tonnes to 2.33 million tonnes by October 16. Nearly 60% of the Xinjiang crop has been harvested, faster than last year, with seed cotton purchase prices high at 7.40–7.50 yuan/kg. Downstream, the traditional autumn peak season has disappointed: textile mill operating rates fell to 69.4%, spinning margins are poor and greige fabric inventories rose to 32.4 days. Prices are expected to keep fluctuating with a downward bias for the rest of October.
Source: SunSirs
U.S. Cotton: Trust Protocol Releases First Measured Outcomes for U.S. Regen
Cotton Grower: The U.S. Cotton Trust Protocol released the first measured outcomes for U.S. Regen, its regenerative cotton tier, at the Textile Exchange Conference in Vancouver. A pilot covering 59,094 harvested acres on 469 fields in seven states showed 20% lower greenhouse gas emissions, 30% greater soil carbon sequestration, 75% lower soil loss and a 49% improvement in water-use efficiency compared with baseline. U.S. Regen is now available for the 2026 crop, with each bale traceable through its USDA Permanent Bale Identification number, and brands can use approved on-product claims and receive field-level outcome data for their reporting.
Source: Cotton Grower
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