Brazilian cotton farmers and traders are ready to profit from a rally fueled by two disparate events: the Iran war and drought.
Cotton prices are up more than 20% this year and this month touched the highest since 2024. Demand is shifting to the natural fiber after the effective closure of the Strait of Hormuz slowed shipments of naphtha, a petrochemical byproduct used to make competing synthetic fibers. Forecasts calling for dry weather in US growing areas added to the rally.