- Cotton prices moved mixed in Q2’26, with China easing slightly while India firmed on stronger textile-side buying and supply-cost pressure.
- Feedstock support came from lower global ending-stock expectations, reduced Chinese planting, and India’s crop recovery under normal monsoon expectations.
- Downstream demand stayed uneven, as mills bought cautiously in China while Indian textile and apparel activity gave stronger price support.
In China, Cotton prices were ~RMB 7.2/kg in April 2026 and ~RMB 7.1/kg in May 2026, showing a slight decline as downstream buying stayed cautious despite supportive supply signals during Q2’26. World cotton ending stocks were reduced from 71.84 million bales in May 2026 to 71.13 million bales in June 2026, giving the market some price floor. China’s MY 2026/27 cotton production was projected at 7.2 MMT, down 4.5%, but the textile off-season, weak home textile and apparel orders, and immediate-need buying by small and medium mills kept prices soft. Textile enterprise operating rates in major regions stood at 74.2% as of June 26, 2026, showing limited mill-side momentum. In India, Cotton prices rose from ~INR 80.59/kg to ~INR 85.76/kg, respectively, during the first two months of the second quarter, showing a ~6.4% increase, supported by firmer mill use and textile export demand. However, the temporary customs-duty exemption on cotton imports from June 1'26, to October 31, 2026, may improve supply for mills and reduce cost pressure.