Brazilian Cotton Farmers Cash In on 20% Price Rally as Iran War and US Dryness Lift Demand
Updated
Updated · Bloomberg · May 26
Brazilian Cotton Farmers Cash In on 20% Price Rally as Iran War and US Dryness Lift Demand
3 articles · Updated · Bloomberg · May 26
Cotton prices have climbed more than 20% this year, reaching their highest level since 2024 and boosting returns for Brazilian farmers and traders.
The rally has been driven by the Iran war's effective closure of the Strait of Hormuz, which slowed naphtha shipments and pushed demand toward natural fiber from synthetic alternatives.
Dry-weather forecasts in US growing areas added further support, tightening expectations for supply from a key competing producer.
The gains show how disruptions in energy shipping and US weather are reshaping global cotton trade flows, with Brazil positioned to benefit.
Brazil's cotton industry is booming from global crises. Can it sustain this dominance against its own economic headwinds?
With war disrupting synthetic fibers, why does a key report claim they're still outcompeting cotton?