ICE cotton futures have experienced a decline, driven by concerns over U.S. trade policies and the strengthening of the U.S. dollar. The March 2025 cotton contract closed at 66.04 cents per pound, marking a decrease of 0.09 cents. The stronger U.S. dollar has made U.S. cotton more expensive for international buyers, contributing to the dip in futures prices. As the dollar rises, cotton becomes less attractive on the global market, placing additional pressure on the market. Profit-taking in other agricultural commodities, such as soybeans and corn, has further impacted cotton futures, as investors reallocate funds in response to market fluctuations. Amid these factors, there is a cautious sentiment among market participants, and many are waiting for the upcoming U.S. Department of Agriculture (USDA) export report to gauge the demand for cotton in both domestic and international markets.

While concerns over U.S. trade policies persist, the cotton industry remains focused on global demand and trade relations. In addition to the stronger dollar, market participants closely monitor external factors, including broader economic trends, which could influence future cotton prices. The cotton market continues to be volatile, with various external pressures affecting pricing dynamics and market sentiment.