On January 4, 2025, the USDA reported a significant decline in net sales of Upland cotton, which fell by 54% week-on-week to 128,900 running bales (RB) for the 2024-25 season. Major buyers included Turkiye (41,300 RB), Pakistan (30,000 RB), and Vietnam (26,500 RB). In contrast, Pima cotton sales saw a 36% increase, reaching 1,700 RB, primarily driven by demand from Costa Rica (900 RB), India (700 RB), and Japan (100 RB) [75bdf61b]. Despite the rise in Pima sales, overall exports for both Upland and Pima cotton declined, with total exports reported at 115,800 RB, an 18% decrease. The primary destinations for Upland cotton exports were Vietnam (33,800 RB), Pakistan (25,300 RB), and China (24,900 RB) [75bdf61b].
The decline in Upland cotton sales is compounded by the broader economic context, where ICE cotton prices dropped over 1% on January 3, 2025, settling at 67.66 cents per pound. This decrease is attributed to weak export sales and a strengthening US dollar, which has made US cotton less competitive globally [1ebc0779]. The market is currently navigating these challenges, with stakeholders closely monitoring economic indicators and export trends to gauge future price movements. Analysts suggest that unless there is a significant turnaround in export demand or a weakening of the dollar, cotton prices may continue to face downward pressure in the near term [1ebc0779].