0918 GMT - Cotton prices gain as the U.S. and China mutually agree to lower tariffs for a 90-day period, pending further negotiations. Cotton futures rise 3% to $0.69 a pound, and are now broadly flat year to date. Cotton had been one of the commodities most sensitive to the escalation in the U.S.-China trade conflict, BMI analysts write. Cotton prices fell to five-year lows in the aftermath of President Donald Trump's sweeping tariff announcements in early April, though they recovered some ground over the following weeks. The U.S.' role as both a large exporter of cotton and importer of cotton-based products explains the vulnerability of cotton prices to U.S. trade developments, BMI says. Prior to the U.S.-China agreement, the market had priced in effectively no cotton trade between both countries, BMI adds. (joseph.hoppe@wsj.com)

(END) Dow Jones Newswires

May 12, 2025 05:18 ET (09:18 GMT)

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