I’m writing the introduction for this month from Dhaka, Bangladesh, after an incredibly fruitful ACSA trip to the subcontinent. Our CEO Jules Willis, members Joel Hatherell and Shay Dareula, and I travelled to Bangladesh and India to visit important clients and trade groups in order to promote the benefits of spinning cotton from Australia.
Naturally, one of the main topics of discussion was the recently imposed US tariffs. We found cautious optimism on the opportunities that might arise as markets adjust, despite the legitimate concern about the possible impact on global trade flows. The actual magnitude of these modifications is uncertain, but it is certain that the cotton trade will adapt to the changing environment, just like any other industry.
ICE futures have managed to stay above 60 cents in spite of the uncertainty, and when paired with a declining Australian currency, gin prices have once again surpassed $600 a bale. This is a very positive development for Australian growers given the current situation.