Cotton Futures Surge Amid Market Fluctuations and Tariff Threats

Cotton futures showed gains ranging from 150 to 185 points on Monday at midday. In contrast, crude oil futures dropped by 96 cents per barrel as the US dollar index increased by $0.332 during the day.

Tariff Tensions Escalate

President Trump responded to China’s retaliatory 34% tariff by threatening an additional 50% tariff on Chinese goods unless they retract the 34%. He set a deadline of Tuesday, April 9, for China to pull back on these tariffs.

Market Insights from CFTC Report

The CFTC Commitment of Traders report released on Friday revealed that managed money reduced its net short position in cotton futures and options by 7,176 contracts as of April 1. As of Tuesday, they held a net short position of 66,634 contracts.

Cotton Price Update

The Cotlook A Index declined by 290 points on Friday, settling at 76.70 cents per pound. Certified ICE cotton stocks remained unchanged on April 4, holding steady at 14,488 bales. Additionally, the USDA’s Adjusted World Price (AWP) rose by 158 points last week, now standing at 55.22 cents per pound.

Current Cotton Futures Prices

May 25 Cotton: 65.21, up 185 points

Jul 25 Cotton: 66.16, up 160 points

Dec 25 Cotton: 67.68, up 152 points

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

More news from Barchart

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.