Cotton Futures Decline Amid New Tariffs and Economic Indicators
Cotton futures experienced notable declines in Thursday’s trading session. Contracts in the front months fell by the maximum limit of 3 cents, while other contracts decreased between 260 to 284 points. Alongside this, crude oil futures decreased by $5.09 per barrel, and the US dollar index dropped by $1.821.
New Tariffs Announced by President Trump
On Wednesday, President Trump unveiled a significant array of reciprocal tariffs. Tariffs on Pakistan will reach 29%, while those on Vietnam will be set at 46%. China faces a tariff rate of 34%, escalating to 54% when considering previously imposed tariffs. Turkey is set to receive a baseline tariff of 10%. These tariffs are scheduled to take effect on April 9, with a baseline enforced on April 5. Currently, no retaliatory tariffs have been announced.
Cotton Export Sales Overview
The latest Export Sales data revealed a total of 129,102 running bales (RB) for the week ending March 27, marking a three-week high. Vietnam emerged as the leading buyer, purchasing 88,600 RB, followed by Pakistan with 21,000 RB. In contrast, China saw net reductions of 21,300 RB. Cotton shipments for the week totaled 93,838 RB, exceeding the previous week’s volumes. Export destinations included 120,000 RB to Vietnam, 76,700 RB to Turkey, and 63,600 RB to Pakistan.
February Cotton Export Statistics
In February, cotton exports (excluding linters) amounted to 1.395 million bales. This figure reflects a 9.1% decline from the previous year but shows an increase of 34.46% compared to January.
Market Data Snapshot
The Seam reported online sales of 4,072 bales on Wednesday, with an average price of 65.41 cents per pound. As of April 2, the Cotlook A Index increased by 125 points to reach 80.10 cents per pound. ICE cotton stocks remained stable on April 2, with certified stocks currently at 14,488 bales. Furthermore, the USDA’s Adjusted World Price (AWP) rose by 158 points on Thursday afternoon, settling at 55.22 cents per pound.
Cotton Futures Closing Prices
May 25 Cotton closed at 64.8, down 300 points.
Jul 25 Cotton closed at 65.71, down 300 points.
Dec 25 Cotton closed at 67.55, down 284 points.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
