Market Movement from 10th Mar 2025 to 15th Mar 2025.
• A neutral to bullish WASDE report, combined with strong exports, has turned the market green. The NY May contract closed with a gain of 130 points week-over-week.
• The March 2025 USDA-WASDE report keeps the U.S. cotton balance sheet unchanged but lowers the season average upland farm price to 63 cents per pound, while global production, consumption, and trade rise, leading to an 80,000-bale reduction in ending stocks.
Cotton prices recovered slightly this week, although fundamentals remain bearish. Stock markets struggled with ongoing trade tensions and economic concerns. Will cotton continue to trade within a range, or will outside factors push it lower again? Get QuickTake’s read on the week’s events in five minutes.
There are no changes to this month’s 2024/25 U.S. cotton balance sheet. The 2024/25 season average upland farm price projection is reduced to 63 cents per pound.
Tariff or No Tariff, Current Cotton Price Drops Not Surprising
Cotton found a rollercoaster ride on the week, slipping down to the 63-cent level that we forecast. But a bit of profit taking on the heels of a solid export sales report saw a triple-digit price increase back to the 65-66 cent prior lows. May fell to a low of 62.54 low at midweek and settled the week at 66.07. The rally then ran into the nine-day moving average in the 65.75 cent area on Thursday and could go no higher.