Cotton Importers Buy More as Brazil Takes 35% of Exports

The global cotton market is shifting as Brazil supplies about 35% of world exports and importers including Pakistan and Vietnam buy more cotton. Bailey McHenry, Senior Commodity Risk Management Consultant at StoneX, explains Brazil's rise in cotton exports, the recovery in cotton consumption, and the Brazil basis hedging gap. Global cotton consumption is up about 1.5% year over year while production is down about 3.8%, and consumption is expected to surpass production. Brazil's second-crop expansion, fiber quality, and low production costs keep Brazilian bales competitive, while a new Brazil basis swap covers risk the ICE No. 2 cotton futures contract leaves unhedged. Discover Actionable Cotton Insights with StoneX Market Intelligence: https://shop.stonex.com/collections/cotton?utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_bailey_mchenry&utm_content=share 00:00 - Cotton Trade Flows Redrawn 01:21 - Cotton Wakes From Its Slump 02:02 - Brazil Takes the Cotton Crown 03:19 - Cotton Demand Bounces Back 04:11 - Cotton Imports Climb Worldwide 04:55 - Brazil Basis Risk Gets a Hedge Like and subscribe for more financial market insights. #Cotton #StoneX #BaileyMcHenry --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social