Cotton Futures Fall; Trump Threatens Massive Tariff Hike on China

Markets experienced varied movements last week. Cotton futures saw losses, with contracts retreating 60 to 77 cents in the nearby months. Meanwhile, the Cotlook A Index climbed 50 points to 76.55 cents on Thursday. ICE certified cotton stocks remained steady at 16,471 bales. Elsewhere, President Trump hinted at a significant increase in tariffs on Chinese products and announced a new 100% tariff starting November 1.

In the cotton market, December cotton was down 146 points this week. The US dollar index also slipped to $98.620 on Friday. Crude oil prices dropped significantly, falling $3.31 per barrel and dipping below the $60 level. President Trump's tariff announcements sparked concern. He mentioned considering a substantial increase in tariffs on Chinese goods and posted on Truth Social that China was becoming 'hostile'. Additionally, he imposed export controls on any critical software late in the day.

The President also announced a new 100% tariff on Chinese goods starting November 1. However, it's unclear if this announcement is related to the Hungarian Day in November, as no such information is available.

The cotton market concluded the week on a down note, with futures posting losses. Meanwhile, the Cotlook A Index saw a modest increase. The US dollar and crude oil prices also slipped. President Trump's tariff announcements added uncertainty to the markets. The impact of these changes on global trade and prices remains to be seen.