International Cotton Market

05-Apr-2025 08:21 AM

International Cotton Market
ICE cotton futures saw a decline of 115 to 144 points in nearby contracts, with the May contract ending the week down by a total of 354 points. Crude oil futures dropped by $4.63 per barrel, while the U.S. Dollar Index gained $0.821 on Friday.
In response to President Trump's reciprocal tariffs, China imposed a 34% retaliatory tariff overnight on all U.S. goods. However, Vietnam took a different approach, offering to reduce tariffs to zero, which provided some relief to the cotton market from session lows.
According to the Commitment of Traders (COT) report released Friday, managed money reduced its net short position in cotton futures and options by 7,176 contracts as of April 1. As of Tuesday, the total net short position stood at 66,634 contracts.
Export sales data shows total cotton commitments now stand at 10.438 million running bales (RB), which is 4% lower than the same time last year. This accounts for 101% of the USDA's export projection, while the average pace is typically around 102%.
The Cotlook A Index fell by 50 points on April 3 to 79.60 cents per pound. On April 2, there was no change in ICE cotton stocks, with certified stocks remaining at 14,488 bales. The USDA's Adjusted World Price (AWP), as of Thursday afternoon, rose by 158 points to 55.22 cents per pound.