Cotton Prices Surge to Year’s High on US-India Trade Progress

25-Apr-2025 10:05 AM

Cotton Prices Surge to Year’s High on US-India Trade Progress
★ Cotton futures hit their highest level of the year as ongoing trade talks between the US and major importer India boosted optimism around global demand. The most-active contract in New York jumped as much as 3.5%, marking a second straight day of gains and reaching levels not seen since late December.
★ The rally comes after cotton prices had plunged to multi-year lows earlier this month following US President Donald Trump's tariff announcements. Now, with signs of a potential trade agreement between Washington and New Delhi by fall, market sentiment has improved. US Vice President JD Vance confirmed progress after a four-day visit to India.
★ Export sales to India also rose during the week ending April 10, according to USDA data. Analysts see this as a positive signal for US cotton exports. “Trade developments with India could serve as a demand-driven catalyst for US cotton,” said Walter Kunisch, senior strategist at Hilltop Securities.
★ A more optimistic global economic outlook is also lending support, with ADM Investor Services noting that a stronger economy tends to boost textile demand, further driving cotton prices higher.