Cotton Futures reach yearly high amid US-India trade talks and positive demand outlook

Cotton futures increased to their highest level of 2025, boosted by positive trade discussions between the US and India, alongside an optimistic economic outlook. The most-active contract climbed 3.5 per cent in New York, marking its second consecutive session of gains and the highest price since December 2024. This rise follows a sharp dip earlier this month, triggered by US President Donald Trump’s tariff announcements.

The US-India bilateral trade deal is expected to be finalized by fall, and this has given a boost to market sentiment. Vice President JD Vance, following a four-day visit to India, highlighted advancements in the talks. Additionally, export sales of US cotton to India increased for the week ending April 10, according to USDA data.

Walter Kunisch, senior commodities strategist at Hilltop Securities, emphasizes these trade developments could act as a demand-driven catalyst for US cotton exports.

Moreover, ADM Investor Services noted that the broader economic optimism contributed to cotton's rise, as strong economic conditions tend to support textile demand.