Cotton futures fell after China cut its import forecast due to trade tensions with the United States. Despite the drop in prices, U.S. cotton is becoming more competitive thanks to a weak dollar, with exports higher than last year. Analysts expect cotton exports to increase for the coming season, while Brazil has revised its production upwards thanks to good weather conditions. China lowered its cotton import forecast for the 2024-2025 season to 1.2 million tonnes, down 300,000 tonnes from its previous forecast. Although the U.S. dollar is weak, making U.S. cotton more competitive, competition from other cotton-producing countries, such as Brazil, is also increasing. Favourable weather conditions in other producing regions, such as Brazil, have led to an increase in production, which is also weighing on prices.
Source : Bloomberg
