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Barclays Bank PLC - ZC SP ETN REDEEM 23/01/2048 USD 50 - Ser B_BALB

Investing.com -- The latest wave of U.S. tariffs has raised concerns about a renewed trade war and potential ripple effects across global supply chains, after the U.S. administration this week announced “reciprocal” tariffs targeting imports from key trading partners.

Cotton futures reached an eleven-year high of over $1.50 per pound in 2022 but ran out of upside steam. They last traded above $1 in March 2024 before falling under the 70 cents per pound level. As the cotton market heads into the 2025 crop year, the price is at an attractive level that could have significant upside potential.

Cotton futures prices rose to the highest since 2011 in mid-2022, reaching $1.5595 per pound. While soft commodities led the commodities asset class in 2023 and 2024, cotton futures were laggards. Meanwhile, cotton is a seasonal commodity that could recover from during the first half of 2025.