FX.co ★ Cotton Futures at Over 2-Month Lows

Cotton futures continued their decline, trading below 63 cents per pound and approaching their lowest levels since late November 2025. This downturn is influenced by the strengthening of the US dollar combined with a decrease in oil prices. The most recent USDA export sales report, covering the week ending January 22, revealed cotton export sales for the current marketing year at 203,700 running bales. This comes after a sharp rebound the previous week when sales reached a record 412,457 bales, heightening concerns regarding demand. Additionally, data from ICE showed that deliverable No. 2 cotton futures inventories amounted to 8,600 bales as of January 28, which is slightly above the 8,595 bales recorded the previous day.