– Reporting Period 02 – 22 April 2025 –
The – exceptionally – three-week reporting period experienced turbulent times. As all markets, the cotton market was also under significant pressure and saw sharp price fluctuations as a result of the US tariff announcements, while other countries, particularly China, responded immediately with the threat of significant counter-tariffs. It was the resulting speculative activity in particular that sent futures tumbling at the beginning of the month, respectively the reporting period. The pause in tariffs somewhat later led to a brief sharp rise in prices, followed by another significant fall in quotations. The upcoming first-notice day for May futures also put pressure on cotton prices. Over the course of the reporting period, some calm returned to the cotton market and the stock exchanges and media seemed to have less of an impact on futures. Fundamental data, such as the growing concern of a smaller crop due to drought, became more important again.
The US dollar lost significant ground against the euro in the reporting period and is in the process of losing its significance as a “safe haven” in the world.