Cotton Prices Gain Amid U.S.-China Tariff Reductions

Cotton prices increased by 27 to 65 points at midday on Monday, after initially showing stronger gains. Meanwhile, crude oil prices rose by $1.22 per barrel. The US dollar index also saw an uptick, climbing $1.447 to reach 101.615.

Progress in U.S.-China Trade Relations

A recent meeting between trade representatives from the U.S. and China yielded positive results, with an announcement indicating a 115% reduction in tariffs for both countries over the next 90 days. The U.S. has reduced its tariff rate on Chinese goods to 30%, while China has lowered its rate to 10%.

USDA Cotton Ginnings Report

The USDA’s annual Cotton Ginnings report revealed a total of 14.075 million running bales (RB) ginned, with projected 2024 production at 14.383 million bales, including Pima. The old crop balance sheet saw the export figure increase by 200,000 bales, thereby reducing the carryout to 4.8 million bales. The anticipated new crop stocks are at 5.2 million bales.

Recent Auction Insights

In the online auction held last Friday by The Seam, sales reached 1,255 bales at an average price of 71.50 cents per pound. Additionally, the Cotlook A Index fell by 70 points on Friday, closing at 78.25. As of May 9, ICE cotton stocks gained 5,529 bales due to new certifications, resulting in a certified stock level of 22,250 bales. The USDA’s Adjusted World Price (AWP) decreased by 13 points last Thursday to 54.81 cents per pound.

Cotton Prices Overview

July 2025 Cotton is currently trading at 66.88, up 27 points.

October 2025 Cotton is at 69.45, up 65 points.

December 2025 Cotton is at 69, up 33 points.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. 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.