ICE cotton futures dropped to a two-week low, pressured by a stronger US dollar and weak export sales. The May 2025 contract fell by 0.81 cents to 65.27 cents per pound, marking a 2.5% decline over the week. The cotton market saw its largest one-day fall of 81 points on Friday, reflecting negative sentiment in both cotton and grain markets.
Export sales were a significant concern, with weekly figures plummeting 63% from the previous week, exacerbating fears of weak demand. For the week ending March 13, US cotton export sales totaled 101,100 bales, down 59% from the four-week average. This slump in exports has contributed to a gloomy market outlook, as the strengthening US dollar makes cotton more expensive for international buyers.
The cotton market showed no signs of recovery, with trading volume on March 21 being the lightest of the year so far. Meanwhile, the US stock market showed slight recovery with small gains in the S&P and Dow Jones indices. However, the cotton futures market remained under pressure, with contracts for July 2025 and December 2025 also showing declines.
The persistent weakness in export sales and the continued strength of the US dollar suggest that the cotton market may face further challenges in the coming weeks.
