ICE cotton futures were largely stable, with a bearish tone. The USDA’s world supply and demand report indicated lower consumption and exports, while production is expected to rise. Although the report was in line with market expectations, it dampened sentiment. A weaker US dollar capped losses in US cotton.

The most actively traded March cotton contract eased by 0.02 cent to settle at 61.59 cents per pound after trading as high as 62.28 cents earlier in the day. The more actively traded May cotton futures contract gained 0.55 cent, or 0.90 per cent, to settle at 63.78 cents per pound.

ICE cotton futures were largely steady after the USDA’s February WASDE report signalled higher global production and stocks alongside lower consumption and exports for 2025–26.
The data, largely in line with expectations, weighed on sentiment, though a weaker US dollar limited losses.
March closed marginally lower, while May gained 0.90 per cent.

Most contracts traded higher by between 2 and 32 points. Contracts from May 2026 through October 2027 recorded their second consecutive higher close, indicating mild strength in deferred months.

Weak US economic data pushed the dollar lower against major currencies, making dollar-denominated cotton relatively cheaper for overseas buyers.

Trading volume was extremely heavy at 131,395 contracts, just below Monday’s 2026 high of 139,728 contracts. Historically, cotton has traded above 100,000 contracts only 25 times, with 15 of the top 18 volume days occurring in the past 12 months, showing that large volumes can occur without major price swings.

USDA February estimates place 2025–26 global cotton production at 119.86 million bales (January: 119.43 million) and ending stocks at 75.11 million bales (January: 74.48 million). The USDA cut its 2025–26 global cotton consumption forecast by 200,000 bales and its export forecast by 60,000 bales.

Market analysts said the data were within expectations and that prices have retreated from recent highs. The market appears oversold and could rebound towards 64 cents.

Meanwhile, Intercontinental Exchange data showed ICE-certified No. 2 cotton stocks at 95,158 bales as of February 9, compared with 93,561 bales a day earlier.

This morning (Indian Standard Time), ICE cotton for March 2026 traded at 61.87 cents per pound (up 0.28 cent), cash cotton at 59.59 cents (down 0.02 cent), the May 2026 contract at 64.04 cents (up 0.26 cent), the July 2026 contract at 65.76 cents (up 0.28 cent), the October 2026 contract at 67.41 cents (up 0.23 cent), and the December 2026 contract at 67.21 cents (up 0.12 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)

Bangladesh’s economic activity continued to expand in January, though at a slower pace, as the Purchasing Managers’ Index (PMI) eased marginally to 53.9, according to the latest survey.

The January PMI declined by 0.3 points from the previous month, signalling a moderation in overall expansion. Despite the slowdown, growth persisted across agriculture, manufacturing and services, indicating broad-based resilience in economic activity, PMI Bangladesh said in a press release.

Bangladesh’s economy continued to expand in January, though at a slower pace, as the PMI eased to 53.9, according to PMI Bangladesh.
Growth persisted across all sectors, with manufacturing remaining in expansion for the 17th month despite softer momentum.
While exports and employment weakened, future business sentiment improved.

Manufacturing activity stayed in expansion for the 17th straight month, though growth softened. Key indicators such as new orders, factory output, imports, input prices and supplier deliveries remained in expansion. In contrast, new exports, input purchases, finished goods and employment registered contraction. The order backlogs index returned to expansion during the month.

Looking ahead, business sentiment improved, with the future business index pointing to faster expansion across all major sectors, including agriculture, manufacturing, construction and services, reflecting stronger expectations for the coming months.

“Overall, the latest PMI readings indicate that the economy experienced a slower expansion, with weak global supply chain recovery and cautious order placement weighing heavy on manufacturing exports. Agriculture sector also showed signs of slowdown after the late autumn paddy harvests. The continued expansion of the future business index across all key sectors however, points to sustained optimism ahead,” said Dr M Masrur Reaz, chairman and CEO, Policy Exchange Bangladesh.

The PMI has been published by MCCI and PEB since January last year. Initiated by the UK government, the index covers more than 500 private sector firms across agriculture, manufacturing, construction and services.

Fibre2Fashion News Desk (SG)

American sportswear company Under Armour Inc has reported a challenging yet strategically significant third quarter (Q3) of fiscal 2026 (FY26) ended December 31, as revenue declined 5 per cent year on year (YoY) to $1.33 billion, or 6 per cent on a currency-neutral basis, reflecting continued pressure in key markets alongside higher tariff costs.

North America remained the biggest drag on performance, with revenue falling 10 per cent to $757 million amid ongoing restructuring and demand softness. In contrast, international revenue grew 3 per cent to $577 million, rising 1 per cent on a currency-neutral basis. Within international markets, Europe, the Middle East and Africa (EMEA) delivered solid momentum with 6 per cent growth, while Asia-Pacific declined 5 per cent and Latin America recorded strong growth of 20 per cent, supported by improving brand traction and distribution expansion.

Under Armour has posted a challenging Q3 FY26, with revenue down 5 per cent YoY to $1.33 billion amid tariff pressure and weak North America demand.
International growth partly offset declines.
Margins narrowed, resulting in losses, though liquidity stayed strong.
For FY26, revenue is seen down 4 per cent, with improving profitability supported by restructuring and cost controls.

Channel performance was mixed. Wholesale revenue declined 6 per cent to $660 million, while direct-to-consumer (DTC) revenue fell 4 per cent to $647 million. Within DTC, owned-and-operated store revenue slipped 2 per cent and e-commerce declined 7 per cent, with digital sales accounting for 38 per cent of total DTC revenue during the quarter.

Category-wise, apparel revenue showed relative resilience, declining 3 per cent to $934 million. Footwear remained under pressure, falling 12 per cent to $265 million, while accessories revenue decreased 3 per cent to $108 million.

Profitability was weighed down by external and structural factors. Gross margin declined 310 basis points to 44.4 per cent, primarily due to higher tariffs, alongside pricing headwinds and an unfavourable channel and regional mix. These impacts were partially offset by foreign exchange gains and a more favourable product mix, Under Armour said in a press release.

Selling, general and administrative (SG&A) expenses increased 4 per cent to $665 million. Excluding a $99 million litigation reserve linked to an insurance carrier dispute and $3 million in transformation costs related to the fiscal 2025 restructuring plan, adjusted SG&A declined 7 per cent to $563 million, mainly due to lower marketing spend following timing shifts.

Restructuring charges during the quarter amounted to $75 million. The company reported an operating loss of $150 million, while adjusted operating income stood at $26 million after excluding litigation, restructuring and transformation expenses.

Under Armour posted a net loss of $431 million in Q3, largely driven by a $247 million valuation allowance on US federal deferred tax assets. Adjusted net income was $37 million. Diluted loss per share was $1.01, while adjusted diluted earnings per share came in at $0.09.

Inventory levels improved, declining 2 per cent to $1.1 billion. Liquidity remained strong, with cash and cash equivalents of $465 million at quarter-end. The company also held $600 million in restricted investments earmarked for repayment of senior notes due in June 2026 and had no borrowings under its $1.1 billion revolving credit facility.

Under Armour continued to progress with its FY25 Restructuring Plan, first announced in May 2024, which aims to enhance operational efficiency. The plan is now expected to cost up to $255 million. By the end of Q3 FY26, the company had incurred $224 million in restructuring and transformation costs, with the remaining charges expected to be recognised by the end of fiscal 2026.

“Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we’re encouraged by the progress we’re making in the business to reignite brand momentum,” said Kevin Plank, president and CEO of Under Armour. “In North America, we believe the December quarter marked the most challenging phase of our business reset, and we expect greater stability ahead as we build on this progress globally.”

“Our transformation is accelerating as we sharpen our focus and strengthen execution. Our strategy is gaining traction through better products, bolder storytelling, and a more disciplined market presence, positioning Under Armour to operate with greater intention and confidence going forward,” added Plank.

Looking ahead, Under Armour revised its full FY26 outlook as revenue is expected to decline 4 per cent, compared with the prior outlook of a 4 to 5 per cent decline. This includes an approximate 8 per cent decline in North America and a 6 per cent decline in Asia-Pacific, each compared with a previously expected high-single-digit decline, partially offset by an approximate 9 per cent increase in EMEA revenue, compared with a previously expected high-single-digit increase.

The gross margin is expected to decline approximately 190 basis points, compared with the prior outlook of a 190 to 210 basis point decline, primarily due to higher US tariffs, unfavourable channel and regional mix, and pricing headwinds, partially offset by favourable foreign exchange and product mix, added the release.

SG&A expenses are expected to decline at a low-double-digit rate, compared with the prior outlook of a mid-teen percentage decline. Adjusted SG&A, which excludes litigation reserve expenses, transformation expenses related to the FY25 Restructuring Plan, and impairment charges, is expected to decline at a mid-single-digit rate, unchanged from the prior outlook, driven by lower marketing costs, restructuring savings, and other cost management initiatives.

Operating loss is expected to be approximately $154 million, compared with the prior outlook of a $56 million to $71 million loss. Excluding the litigation reserve expense and expected transformation and restructuring charges, adjusted operating income is expected to be approximately $110 million, compared with the prior outlook of $95 million to $110 million.

Diluted loss per share is expected to range from $1.24 to $1.25. Adjusted diluted earnings per share is expected to range from $0.10 to $0.11, compared with the prior outlook of $0.03 to $0.05.

Fibre2Fashion News Desk (SG)