Cotton Prices Surge Due to War in Iran and Raw Material Shortages
The global cotton market is experiencing a significant rise in prices amid the military conflict in Iran and increasing oil costs. These changes have led to a return of investors to a “bullish” sentiment in the market, reflecting growing confidence in the continued increase in cotton prices.
This is reported by AgroReview
Impact of the Conflict in Iran and Rising Oil Prices
Leading industry experts emphasize that the increase in prices for synthetic fibers, such as polyester and nylon, which are derived from petroleum products, has become one of the main factors driving up cotton prices. According to the U.S. Commodity Futures Trading Commission, investors have shifted to net long positions for the first time in a long period: the number of cotton purchase contracts exceeded sales by 16,825 units. This indicates a significant turnaround in market trends after a year dominated by “bearish” expectations.
“Experts explain this rise in prices for synthetic fibers, particularly polyester and nylon, which directly depend on petroleum products.”
Demand from Asia and Risks for Future Harvests
Recently, there has been an increase in demand from the textile industry, especially in the Asian region. The rising costs of raw materials for synthetic fibers have compelled manufacturers to increase the share of cotton in their products, leading to additional pressure on the cotton market.
The pace of price growth has also been influenced by rising fertilizer costs and geopolitical tensions, which could lead to a reduction in cotton planting areas and a decrease in future harvests. This creates risks for the stability of raw material supplies in the global market.
Analysts at Cotlook predict that during the 2026–2027 season, the global cotton market could face a deficit of about 295,000 tons. Additional complications arise from drought in key cotton-growing regions in the U.S., which exacerbates uncertainty regarding future supplies.
Since the escalation of the conflict, the price of cotton has risen by 22%, approaching the highest levels seen in recent years. Experts believe that even if the oil market stabilizes, cotton’s position will remain strong due to changes in demand structure and supply constraints.