RFD NEWS Special Report: Why Cotton Wholesalers Matter More When Markets Turn Volatile

Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.

cotton bud with the sunset_Photo by Kelli via AdobeStock_386673555.jpg

A cotton bud framed by a sunset.

This week, we take a closer look at an often-overlooked segment of the cotton supply chain — wholesalers — and the role they play in stabilizing demand and managing risk in volatile markets. We examine how wholesalers operate among growers, mills, and retailers, and why their role becomes more visible during periods of stress.

The series draws on insights from longtime textile executive Bob Antoshak, who argues that cotton and apparel markets do not operate as simple producer-to-consumer systems. Instead, wholesalers consolidate fragmented retail demand, finance inventory, and translate uneven buying patterns into workable production programs for mills and manufacturers.

We’ll explore why efforts to bypass wholesalers can increase volatility rather than reduce costs, shifting risk onto retailers, factories, and ultimately producers. Additional coverage will focus on how wholesalers support diverse retail channels — including independents, regional chains, and workwear programs — that collectively sustain a significant share of cotton demand.

The series concludes with a look back at 2025, a year marked by tariffs, freight disruptions, and inflation, and how wholesale decision-making helped convert uncertainty into executable supply-chain plans.

Farm-Level Takeaway: Understanding how wholesalers function helps explain why cotton demand can remain resilient even during turbulent market conditions.
Tony St. James, RFD NEWS Markets Specialist

Wholesalers Stabilize Cotton Supply Chains During Volatile Markets

Cotton wholesalers play a critical but often overlooked role in keeping supply chains functioning when markets turn volatile, according to textile executive Bob Antoshak. As pricing swings, logistics disruptions, and demand uncertainty intensify, wholesalers help absorb risk that would otherwise fall directly on producers, mills, and retailers.

Antoshak explains that the cotton and apparel markets are not linear systems that move cleanly from producer to end user. Instead, they rely on wholesalers to consolidate fragmented demand, finance inventory, and translate uneven retail needs into workable production programs. Without that stabilizing layer, volatility increases rather than efficiency.

Wholesalers also provide working capital by carrying inventory and committing to volumes ahead of confirmed demand. That function allows factories to maintain steady production schedules while giving retailers flexibility to replenish product as conditions change.

In uncertain years, wholesalers are often the first to adjust programs, pricing, and logistics to keep product flowing. Antoshak argues that this ability to respond quickly helps prevent supply disruptions that ultimately ripple back to growers through weaker demand and pricing instability.

Farm-Level Takeaway: A stable wholesale layer helps protect cotton demand during market stress.
Tony St. James, RFD NEWS Markets Specialist

Cutting Out Wholesalers Weakens Cotton Market Stability

Efforts to “cut out the middleman” in cotton and apparel supply chains often increase risk rather than reduce costs, according to industry veteran Bob Antoshak. Removing wholesalers shifts inventory, financing, and execution burdens onto participants least equipped to absorb them.

Antoshak notes that wholesalers standardize thousands of smaller retail transactions, compliance requirements, and delivery schedules into manageable programs for mills and manufacturers. Without that function, brands face higher administrative costs or abandon smaller accounts altogether, narrowing market access.

For retailers, especially independents and regional chains, buying directly from factories often means longer lead times, larger minimum orders, and tighter payment terms. Those constraints reduce assortment flexibility and discourage replenishment, weakening overall cotton demand.

Factories face increased volatility when wholesalers disappear. Wholesalers smooth production cycles by aggregating demand across many buyers, helping keep lines running even when individual accounts pull back. Without that buffer, factories become more dependent on a handful of large customers, increasing downside risk across the supply chain.

Farm-Level Takeaway: Removing wholesalers often reduces cotton demand stability, not costs.
Tony St. James, RFD NEWS Markets Specialist

2025 Proved Cotton Wholesalers Matter In Stressful Markets

Market conditions in 2025 provided a clear test of the wholesale model, according to Bob Antoshak, as cotton and apparel supply chains navigated tariffs, freight volatility, inflation, and shifting demand signals. The year highlighted how wholesalers convert uncertainty into executable plans.

Antoshak describes wholesalers as decision-makers rather than pass-through entities. During 2025, wholesalers adjusted assortments, pricing structures, and logistics strategies to keep programs viable as costs and demand changed. That responsiveness helped preserve order flow for suppliers and continuity for customers.

On the supply side, wholesalers provided factories with clearer volume commitments and timing, allowing production schedules to remain intact despite broader market instability. On the demand side, wholesalers helped retailers maintain product availability without overextending inventory.

Rather than amplifying volatility, wholesalers reduced friction by making rapid commercial decisions based on real-time sell-through data. Antoshak argues that this role becomes most visible in difficult years, when execution matters more than theory.

Farm-Level Takeaway: Stress years reveal the wholesale channel’s stabilizing value.
Tony St. James, RFD NEWS Markets Specialist

Cotton Wholesalers Protect Demand Across Diverse Retail Channels

Cotton wholesalers help preserve broad-based demand by serving retail channels that would otherwise struggle to source product efficiently, according to Bob Antoshak. This “long tail” of retail plays a meaningful role in sustaining cotton consumption.

Independent stores, regional chains, uniform programs, and workwear accounts often lack the scale or capital to buy directly from factories. Wholesalers break large production runs into manageable assortments, smaller lots, and replenishment programs that keep these outlets viable.

Antoshak notes that wholesalers also democratize access to compliance, traceability, and quality standards. By spreading those systems across hundreds of accounts, wholesalers raise overall market discipline while reducing the burden on individual retailers.

Without wholesalers, assortments narrow, buying becomes more conservative, and out-of-stocks increase. Over time, that contraction reduces cotton’s retail footprint and concentrates demand among fewer players, increasing vulnerability across the supply chain.

Farm-Level Takeaway: Wholesale distribution helps sustain the diversity of cotton demand.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
What is “gross income from farming” for purposes of Chapter 12 (farm) bankruptcy – that is the topic of today’s Firm to Farm blog post by Roger McEowen.
In today’s Firm to Farm blog post, Roger McOwen breaks down the Court’s regulations on unconstitutional federal power and the ruling’s impact on BOI reporting.
The topic of this Firm to Farm blog post by RFD-TV agri-legal expert Roger McEowen is a potpourri of legal issues facing farmers and ranchers—farm bankruptcy, sovereign immunity, farm leases, and pipeline damages.
What can these facilities do to protect themselves? I wrote about this issue last spring, and since that time, the U.S. Court of Appeals for the Eighth Circuit has issued a significant opinion. That makes an update in order.
On January 31, the U.S. House overwhelmingly passed tax legislation containing provisions of importance to farmers and ranchers in particular and many taxpayers in general.
In this Firm to Farm blog post by RFD-TV legal expert Roger McEowen, he looks ahead at what might be the biggest issues in ag law and tax in 2024.
In part six of his blog series,"Top 10 Developments in Ag Law and Tax in 2023,” farm legal expert Roger McEowen tackles issue #2, foreign ownership of ag land.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

George Baird, with the American Society of Farm Managers and Rural Appraisers (ASFMRA), joins us with updates on how this year’s rice harvest is shaping up.
Crop insurance remains a vital tool for managing climate-driven risk.
Expect firm demand for dependable HRS and SW, steady movement in HRW, more sorting on SRW, and selective bids on durum until full milling results are released.
Reversion would sharply increase dairy prices and raise crop supports, driving up government costs and consumer prices while unsettling markets—even as crop insurance remains in place.
Treat financial stress as a health risk—know the warning signs, normalize conversations, and connect farm families to local and national support early.
Congress has just over a month of working days left for the year. Plan for uneven USDA service until funding is restored, and closely monitor Farm Bill talks, as avoiding Permanent Law before January 1 is the single biggest risk to markets and milk prices.