Cotton Futures Retreat as Crude Oil Hits Four-Year Low

Cotton futures exhibited weakness on Tuesday, concluding the day lower by 44 to 56 points. In related markets, crude oil futures dropped $2.48 per barrel, marking a significant decline to a four-year low—the lowest closing price since April 2021. Additionally, the US dollar index fell by $0.247.

Trade Tariffs Increase on Chinese Goods

Importantly, new tariffs of 50% on Chinese goods are set to take effect tomorrow, April 9, raising the total tariff rate to 104% on all imports from China. This increase aims to address ongoing trade tensions and may have further implications for commodity markets.

Market Activity and Statistics

On April 7, only 539 cash bales were sold on The Seam, with an average price of 63.34 cents per pound. The Cotlook A Index fell by 145 points on Monday, settling at 75.25 cents per pound. Meanwhile, ICE cotton stocks remained steady on April 7, with current certified stocks at 14,488 bales. The USDA also reported a rise in the Adjusted World Price (AWP), which increased by 158 points last week to 55.22 cents per pound.

Cotton Futures Closing Prices

May 25 Cotton closed at 65.55 cents per pound, down 44 points.

Jul 25 Cotton closed at 66.33 cents per pound, down 56 points.

Dec 25 Cotton closed at 67.75 cents per pound, down 48 points.

On the date of publication, Austin Schroeder did not have (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
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