Cotton Futures Drop as US and China Prepare for Trade Talks

Cotton futures are experiencing midday weakness, with most contracts down 32 to 50 points, as May contracts approach their expiration. Additionally, crude oil prices have decreased by 60 cents per barrel, while the US dollar index has risen by $0.273 to $99.320.

On Tuesday, the US and China announced a meeting in Geneva, Switzerland, scheduled for Saturday. This meeting will include Treasury Secretary Bessent, USTR Greer, and Chinese Vice Premier He Lifeng. Discussions are expected to focus on reducing export controls and addressing broader tariff issues.

The Tuesday online auction from The Seam displayed sales of 4,555 bales at an average price of 69.37 cents per pound. The Cotlook A Index increased by 275 points on Tuesday, reaching 80. No changes were reported in ICE cotton stocks as of May 6, maintaining certified stocks at 14,049 bales. The USDA’s Adjusted World Price (AWP) rose by 6 points last week to 54.94 cents per pound.

May 25 Cotton is currently at 71.94, reflecting an increase of 159 points.

Jul 25 Cotton stands at 67.33, down 50 points.

Dec 25 Cotton trades at 69.2, a decrease of 32 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 are intended for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

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