ICE cotton futures slumped on Wednesday to their lowest level in more than 10 years, as new cases of the coronavirus in Vietnam and a strong dollar marred investor interest in the natural fiber.

Cotton contracts for May settled down 1.28 cent, or 2.2%, at 56.64 cents per lb.

Earlier in the session, it hit a low of 55.65 cents a lb, a level last seen in September 2009.

“Investors are scared of what effect would coronavirus have on Vietnam, our No. 1 customer," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia, adding that the contract could go down to 44 cents.

Weeks after announcing the recovery of all 16 of its coronavirus sufferers, Vietnam, one of the biggest consumer of US cotton, said it now had 68 infections – 52 of them detected since March 6.

Most financial asset classes have tumbled as markets grapple with the sheer scale of government programs and handouts aimed at softening the economic shockwave from the coronavirus.

“It (the virus) will change the landscape of the economy and we will never go back to where we were, even if they kill the virus," Brown said.

Further weighing on the contract, the dollar surged to hit multi-year highs against several major currencies, making the natural fiber costlier.

Traders now eye the weekly export sales report from the US Department of Agriculture due on Thursday.

Certificated cotton stocks deliverable as of March 17 totaled 41,580 480-lb bales, up from 40,345 in the previous session.