Cotton prices rose steadily during the first three weeks of March and then edged down slightly. The seven-market U.S. average spot price ended the month up 7%, at almost 88 cents per pound, very close to the 12-month high of 89 cents reached in August.
However, market dynamics in Asia might result in lower prices ahead. Cotton prices fell in India and Pakistan during the month, and Chinese officials announced a decision to allow state reserves of cotton to be sold in higher quantities and at lower prices than previously stated.
This no doubt contributed to the decline in price in the last week of March, and may continue to put downward pressure on cotton prices in the weeks and months ahead.