Cotton futures saw a notable increase on Tuesday as the US dollar weakened and grain prices surged.
The benchmark March cotton contract on the Intercontinental Exchange (ICE) settled up by 0.8% at $0.8660 per lb, marking a strong upward movement following several days of market fluctuations.
The rise in cotton prices comes as the greenback showed signs of weakening, making cotton more attractive to overseas buyers.
Additionally, rising prices of grain commodities such as wheat and corn have bolstered the agricultural sector, drawing investor attention back to cotton markets.
Analysts suggest the decline in the US dollar has played a crucial role in driving cotton prices higher, alongside concerns about tightening supplies and strong demand from textile industries.
The increased demand for agricultural goods also correlates with higher input costs for cotton producers, which could lead to a more volatile market in the coming weeks.
Industry experts are keeping a close watch on weather conditions and geopolitical factors that could further influence global cotton supply chains.
The uptick in cotton prices follows a period of relatively flat trading, with cotton markets now bracing for more price fluctuations as economic and weather factors continue to evolve.
