– Reporting Period 19 February – 04 March 2025
In the last two weeks, the ICE Cotton No. 2 futures have fallen to their lowest level since summer 2020. Then, as now, macroeconomic events were the cause. While lockdowns during the pandemic caused demand to collapse in 2020, it is now more likely to be a new trade conflict brewing between the US and China. In recent months, prices have been quite stable within a range of 65 and 70 ct/lb. According to experts, the latest price losses have probably mainly resulted from China’s announcement to impose tariffs on US cotton and other US agricultural products from Monday – a countermeasure to the US tariffs on various Chinese products. Demand has slowly picked up again after the New Year festivities. But with China being the largest buyer of US cotton in recent years, these measures could have a strong negative impact on the market.
Physical quotations followed the ICE futures and fell. However, in view of the global political situation, European market participants kept a low profile, and the market remained calm.