Fashion
ICE cotton eases amid global economic & geopolitical uncertainties
The most actively traded March cotton contract eased 0.04 cents to settle at 64.30 cents per pound, marking its second-lowest close since January 2, 2026. Cotton futures remained locked in a narrow range throughout the session, with prices finishing from 7 points lower to 9 points higher.
ICE cotton futures edged lower as the market searched for clearer demand signals amid global economic and geopolitical uncertainty.
Limited losses were cushioned by strength in grain markets and a rebound in global equities after tariff concerns eased.
Trading volumes and open interest stayed robust, signalling persistent participation despite narrow price movement.
Despite minimal price movement, turnover remained solid. Trading volume totalled 40,577 contracts, compared with 56,942 contracts cleared in the previous session. Open interest reached its sixth consecutive all-time high, rising by 2,128 contracts to 338,853. Over the past 14 sessions, open interest has increased every day, adding a cumulative 39,281 contracts, highlighting unusually persistent participation despite stagnant prices.
Broader markets rebounded after President Donald Trump announced a framework for a NATO-related agreement involving Greenland and withdrew planned February 1 tariffs on European nations. The announcement eased concerns over a potential US–Europe trade conflict that had fuelled sharp losses a day earlier.
All three major US equity indices recovered between half and two-thirds of their prior session losses. Gold posted new all-time highs on both an intraday and closing basis. The US dollar index ended higher but recovered less than 20 per cent of the previous day’s decline.
Market analysts said participants were largely watching how developments unfold. The market has adjusted slightly, but there has been no strong reaction.
US stocks rebounded modestly after their worst sell-off in three months as investors assessed President Donald Trump’s remarks at the Davos Forum.
Rising grain markets provided indirect support. CBOT soybean futures closed higher due to slow early progress in the South American soybean harvest, as market focus shifted away from geopolitical tensions.
Analysts said demand expectations remain cautious, although demand may improve slightly this year. Many are hoping the Buy American Cotton Act could have some impact. It may offer a small glimmer of hope, but for now, conditions remain relatively calm. The Buy American Cotton Act is a proposed US measure designed to support domestic cotton consumption by offering transferable federal tax credits to companies using US-produced cotton.
According to Intercontinental Exchange data, deliverable No. 2 cotton futures inventory fell to 10,422 tons as of January 20, down from 11,029 bales in the prior session.
This morning (Indian Standard Time), ICE cotton for March 2026 was settled at 64.25 cents per pound (down 0.05 cent), cash cotton at 62.05 cents (down 0.04 cent), the May 2026 contract at 65.85 cents (down 0.07 cent), the July 2026 contract at 67.34 cents (down 0.06 cent), the October 2026 contract at 68.33 cents (up 0.07 cent) and the December 2026 contract at 69.07 cents per pound (down 0.09 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
For India’s textile and apparel (T&A) industry, which is deeply dependent on US buyers and already grappling with sharply higher duties imposed since August ****, the implications are severe. The US accounts for nearly $* billion of India’s T&A exports ($*.** billion during January–October ****, down from $*.** billion in ****), with apparel alone contributing $*.** billion. If a tariff were imposed anywhere near the headline rate, Indian garments would likely become commercially unviable almost overnight. US brands and retailers would be forced to reroute sourcing rapidly, while Indian exporters, who are highly exposed to the US market, would scramble to find alternative destinations for a large share of their exports. The US accounts for nearly $* billion of India’s T&A exports ($*.** billion during January–October ****, down from $*.** billion in ****), with apparel alone contributing $*.** billion, as per Fibre*Fashion**;s sourcing intelligence tool TexPro.
What exactly is the “*** per cent tariff” threat?
All geographic regions recorded growth at constant exchange rates, with particularly strong double-digit performances in the Americas, Japan, and the Middle East and Africa. Sales in the Americas climbed 14 per cent at constant rates, supported by robust local demand across all business areas and major markets. Europe recorded 8 per cent growth, underpinned by local demand and supportive tourist spending, especially from North American and Middle Eastern visitors, with the UK and Italy delivering notable performances.
Richemont SA has posted a strong Q3 FY26, with sales reaching €6.4 billion (~$7.424 billion), up 11 per cent at constant exchange rates, led by retail strength and broad regional growth.
The Americas, Japan, and Middle East & Africa delivered double-digit gains.
Nine-month sales rose 10 per cent at constant rates, while disciplined investment supported growth amid currency and cost pressures.
The Middle East and Africa emerged as the fastest-growing region, with sales up 20 per cent, led by strong momentum in the United Arab Emirates and double-digit growth across all business areas. Asia Pacific sales increased 6 per cent at constant rates. Sales in China, Hong Kong and Macau combined rose 2 per cent, largely driven by solid activity in Hong Kong, while South Korea and Australia posted robust growth. Japan delivered a standout performance, with sales rising 17 per cent, Richemont said in a press release.
By distribution channel, retail continued to lead growth, with sales up 12 per cent at constant exchange rates and accounting for 72 per cent of group sales. Online retail sales rose 5 per cent at constant rates.
The ‘Other’ business area of the group remained broadly stable. Within this segment, Fashion and Accessories Maisons posted a 3 per cent increase in sales.
During the quarter, the group benefited from new product launches and impactful communication, with Peter Millar and Gianvito Rossi posting solid momentum within the Fashion and Accessories segment.
For the nine-month (9M) period of FY26, Richemont reported sales of €17 billion, representing growth of 10 per cent at constant exchange rates and 5 per cent at actual rates. Growth over the period was broad-based across regions, channels and business areas.
The group continued to invest consistently in nurturing the long-term growth prospects of its Maisons amid a complex macroeconomic environment characterised by weaker major trading currencies and rising material costs, which continued to weigh on margins. Richemont ended the period with a robust net cash position of €7.6 billion, compared with €7.9 billion a year earlier.
Fibre2Fashion News Desk (SG)
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ICE cotton eases amid global economic & geopolitical uncertainties
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