July cotton shift: Prices top ICAC range as stocks hit 8-year low - Textile Fashion News Fibre2Fashion Sponsored Join Our Exclusive Free Webinar on Strategic Intelligence for Apparel Sourcing Leaders | Register Now Source innovative home te
- Textile Fashion News Fibre2Fashion Sponsored Join Our Exclusive Free Webinar on Strategic Intelligence for Apparel Sourcing Leaders | Register Now Source innovative home textile products and trends at Intertextile Shanghai Home Textiles 2026 | Explore More Connect with global textile professionals at Intertextile Shanghai | Register Today Source sustainable performance fabrics and innovations at Functional Fabric Fair | Register Now Intelligence TexPro F2F Prime News Trade Fairs & Events Marketplace Marketing Solutions Digital Advertisement Print Advertisement Webinar Marketing Media Booster Magazine Subscription Articles Advertise with Us Sign In All Categories Articles News Buyers Suppliers Trade Fairs Interview Market Intelligence F2F Prime For You Textiles Apparel Fashion Retail E-commerce Technology Sustainability Chemicals Technical Textiles News Flash India extends zero customs duty on PTA, MEG till July 15 US declines USMCA renewal in its current form Euro area manufacturing biz confidence picks up again in June UK manufacturing upturn shows signs of losing momentum in June Euro area inflation cools to 2.8% in June estimate Textiles | July cotton shift: Prices top ICAC range as stocks hit 8-year low 02 Jul '265 min read Pic: Shutterstock Insights Global cotton has entered a supply deficit, with 2026/27 mill use (*21.8 million bales) exceeding production (*16 million bales). An eight-year low in world stocks and *5.3 c/lb Cotlook A prices signal that the market has already moved ahead of ICAC's price outlook. Higher input costs (+** per cent) and severe US drought (*8 per cent of crop affected) are raising procurement risks for textile buyers. Three institutional indicators frame this shift. ICAC projects * * * * / * * global cotton production to decline * per cent to * * . * million tonnes, while cultivated area contracts * per cent to * * . * million hectares. USDA forecasts world ending stocks at * * . * million bales, down * . * million bales year-on-year (YoY) and the lowest since * * * * / * * . At the same time, global mill use is expected to reach * * * . * million bales, the highest in six years, against production of only * * * million bales, pushing the market into a supply deficit. Cost pressure is the leading edge ICAC identified a Q * * * * * surge in global fertiliser prices of more than * * per cent, driven by Middle East tensions and Strait of Hormuz shipping disruptions. Fertiliser is the single largest variable cash cost for cotton growers in the US, Brazil, India and China. Higher input costs before planting lift the breakeven farm-gate price for cotton and make competing crops such as corn and soybeans more attractive. That reduces cotton acreage in the next cycle. Weather risks reinforce the tightening outlook. ICAC estimates that * * per cent of the US cotton crop is located in drought-affected areas. USDA has reduced its * * * * / * * US production
