– Reporting Period 23 April – 06 May 2025 –
The ICE Cotton Futures No. 2 experienced an upward trend in the reporting period. For the first time this year, the quotations passed the 70 ct/lb mark. This development appears to have rather been driven by expectations and speculation than by demand figures, which were weaker. The weather forecast for Texas has once again been a reason for betting on supply shortages. Announcements by the media regarding possible talks between China and the USA also played a role in this regard.
China has obviously retreated further from the US cotton market having bought less cotton than in previous years already ahead of the Trump administration’s tariff announcements. Primarily because domestic production was forecast to be higher for the season. Many Chinese spinning mills have replaced US cotton by cotton from Brazil or Australia since the beginning of the ongoing trade conflict to avoid or reduce additional costs due to tariffs.
The European market remained mostly calm. Prices were requested, but only a few inquiries led to closed contracts.