ICE cotton futures slipped more than 1 percent to a near one-week low on Thursday, hit by a stronger dollar and weak US export sales data. The most active cotton contract on ICE Futures US, the May contract, settled down 1.1 cents, or 1.48 percent, at 73.11 cents per lb. The second-month contract slid to its lowest level since March. 1, at 73.05 cents.
"Cotton is down because of the bad exports report, sales were not so spiffy, also the strong dollar is hurting all the commodities," said John Bondurant, a trader in Memphis, Tennessee. The dollar index was up 0.6 percent. A stronger greenback makes commodities priced in dollars, such as cotton, more expensive for holders of other currencies.
Data from the US Department of Agriculture showed net sales of 114,000 running bales for the fibre in the 2018/19 marketing year for the week ended Feb. 28. The USDA's monthly World Agriculture Supply and Demand Estimates (WASDE) report is due on Friday. "I don't think the market is looking for much change in the report; nothing very spectacular, maybe slightly good exports," said Bondurant.
Trade negotiations between the United States and China are in focus with President Donald Trump saying talks with China were moving along well. On Wednesday he predicted either a "good deal" or no deal.
Total futures market volume rose by 2,583 to 32,409 lots. Data showed total open interest fell 2,951 to 220,339 contracts in the previous session. Certificated cotton stocks deliverable as of March 6 totalled 130,258 480-lb bales, down from 131,497 in the previous session.