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Global Cotton Market Holds Steady: Major Benchmarks Show Stability in Late 2025

The global cotton market has entered a period of calm consolidation as 2025 draws to a close. According to the December 2025 Economic Letter from Cotton Incorporated, most major cotton benchmarks showcased limited movement over the past month, underlining a broadly stable environment for the textile supply chain.

On the U.S. futures market, the NY/ICE March contract briefly tested the 65 cents per pound threshold in late November. However, it later retreated to settle closer to 63 cents per pound. Similarly, the A Index—a key barometer for international prices—remained range-bound, drifting slightly lower from 76 cents to approximately 74 cents per pound during the review period.

Firmness in Chinese and South Asian Markets

While international indices saw minor easing, the Chinese market displayed comparative firmness. The Chinese Cotton Index (CC Index 3128B) edged up from 94 cents to 96 cents per pound in international terms. Domestically, prices in China fluctuated between 14,750 and 15,000 RMB per ton, a stability supported by the mild appreciation of the Renminbi against the U.S. Dollar.

The South Asian markets also mirrored this trend of steady pricing:

  • India: Spot prices for the high-quality Shankar-6 variety held steady near 74 cents per pound (approximately ₹52,000 per candy).
  • Pakistan: Spot prices remained consistent at about 66 cents per pound (roughly 15,300 PKR per maund), with the Pakistani Rupee holding firm at 281 per dollar.

Implications for the Textile Industry

This period of price predictability offers a welcome reprieve for global garment manufacturers and retailers. As seen in recent import recoveries in the U.S. and UK, stable raw material costs are essential for brands attempting to manage margins in a high-cost operational environment.

Industry analysts suggest that as long as cotton prices remain within these established bands, textile producers can maintain "just-in-time" sourcing strategies without the fear of sudden price shocks. Looking ahead to 2026, the market's focus will likely shift to crop yield forecasts and the continued impact of currency fluctuations on global trade competitiveness.