Cotton Futures Rise Amid Falling Crude Oil Prices and Tariff Changes

Cotton futures experienced gains ranging from 3 to 27 points as of midday Wednesday. In contrast, crude oil futures dropped by $2.17 per barrel, hitting their lowest price since February 2021. Meanwhile, the US dollar index fell by $0.471 on the day.

Tariffs Impacting Trade Relations

Overnight, the United States implemented an additional 50% tariff on Chinese goods, resulting in a total tariff of 104%. In response, China announced a 50% tariff increase on US goods, raising the total to 84%, which will take effect on Thursday.

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Cotton Market Updates

The Cotlook A Index climbed 270 points on Tuesday, reaching 77.95 cents per pound. Additionally, ICE cotton stocks remained steady as of April 8, with certified stocks totaling 14,488 bales. The USDA’s Adjusted World Price (AWP) rose by 158 points last week to settle at 55.22 cents per pound.

Current Cotton Futures Prices

• May 25 Cotton: 65.82 cents, up 27 points
• Jul 25 Cotton: 66.44 cents, up 11 points
• Dec 25 Cotton: 67.78 cents, up 3 points

On the date of publication, Austin Schroeder did not hold any positions, either directly or indirectly, in any of the securities mentioned in this article. All information and data provided in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy.

 

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