Cotton: a globally traded crop used in textiles and industrial products. It’s graded bale by bale, based on length, strength, color, micronaire and uniformity – making it one of the least fungible commodities in agriculture.
Traders must match exact customer specs with available supply, while managing market risk, logistics and quality.
In this edition of Trade Talks, we meet Diego Lozada, our Cotton trader based in Memphis (US), to explore his journey, what drives commercial decisions, and why relationships and sustainability are important in trading.
Q
What inspired you to become a trader?
A
At first, I didn’t plan to be a trader. I grew up in Venezuela in a family of cattle ranchers and sugarcane farmers, and moved to the US at 17 to study agribusiness at Texas A&M University. My economics classes opened my eyes to how markets work and sparked my interest in finance, so I started chasing finance experience – internships, online courses, etc. I studied hard and eventually found a path that blended my agricultural roots with my passion for market dynamics.
Q
Why choose cotton?
A
Honestly, I had zero knowledge of it – I didn’t even check clothing labels! But when LDC offered me a role in Memphis, I leaped at the chance. And once I started, I realized how technical and specific cotton is. Every bale is graded individually and customers want exact qualities: length, strength, color, brightness… This complexity makes it both challenging and fascinating.
Q
Can you share a memorable moment from your trading journey?
A
Landing the job from LDC on the day of my graduation. I had another offer from a large bank, but I knew I wanted to trade. My student visa was about to expire, but LDC agreed to move up my start date so I could stay in the US – so I packed up, drove to Memphis and started trading cotton. I’ve never looked back!
Q
How important are relationships in your work?
A
Trading is far more than buying and selling; it involves research, strategy, logistics, quality control and relationship management. The market sets the tone for the day: on volatile days you need to act fast, and on quieter days you focus on planning, positions and customers. The actual trade is only the start of the process.
To me, relationships are everything. When a farmer, mill or merchant chooses to work with you, they trust you with their product, money and business. That trust takes time to build. You earn it by showing up, delivering and being consistent. Over time, many business relationships become friendships.
Q
What influences commercial decisions?
A
A balance of data and instinct. There are plenty of data elements to weigh: market signals, crop quality, global demand, weather, geopolitics… But instinct also plays a part: you need to act fast and think clearly. One wrong move can cost millions, so you learn to combine preparation and trust in your team, with experience and the insight it brings.
Q
What role does sustainability play?
A
Sustainable cotton is growing fast. When I started in early 2022, product traceability wasn’t as critical as it is today. Now, brands want full visibility: where their cotton comes from, how it was grown and who handled it. That makes our work with cotton farmers even more important. Many farmers genuinely want to do the right thing, but in the current market environment, they’re under financial pressure. Part of our role is to help them stay competitive while adopting best practices.
Q
What advice would you give to aspiring traders?
A
Set a goal and work toward it. Even if you don’t reach it, the journey will open doors. As I said – I never planned to be a trader, but chasing my goals led me here, and it’s the best decision I’ve made!
