ICE cotton futures experienced a rise, with the March 2025 contract settling at 66.54 cents per pound, marking a gain of 0.51 cents. This increase was primarily driven by the surge in crude oil prices, which provided support for US cotton prices. However, the strength of the US dollar hindered further growth, as a stronger dollar makes cotton more expensive for overseas buyers, limiting demand.

The USDA Weekly Export Report revealed strong cotton shipments, particularly to China and Turkey, which helped to maintain positive market sentiment. Despite this, the stronger dollar weighed down the overall cotton market. The rise in crude oil prices also made polyester, a synthetic alternative to cotton, more costly, which could drive more demand for cotton in the longer term.

Other cotton contracts, such as May 2025, showed slight increases, though the broader market remained cautious due to external factors. Other commodities, including soybeans, corn, and wheat, experienced declines amid tariff concerns. The cotton market’s focus now lies on demand trends, especially from key buyers like China and Turkey. Traders are closely watching any shifts in global trade dynamics, as they could significantly impact market performance in the near future.