Brazil’s cotton prices reached a one-year high in mid-March, rising by 1.92%, according to CEPEA. Term contracts are emphasized for international markets, with demand for cotton maintained by industry buyers. February exports set a record despite a 33.9% decrease from January. ICAC projects increased global cotton production and consumption for the upcoming season.
In mid-March, Brazil experienced significant fluctuations in cotton prices, yet the overall trend was upward, as reported by the Centre for Advanced Studies on Applied Economics (CEPEA). The CEPEA/ESALQ Index reached a one-year peak, rising by 1.92 percent, concluding at BRL 4.2582 (approximately $0.75) per pound. This marked the highest price level since March 14, 2023, which stood at BRL 4.2754 per pound.
Market participants are focusing on securing term contracts, especially for international sales, where prices are reported to be higher than domestic rates, according to CEPEA’s recent report. The rise in global market prices has augmented seller confidence, prompting them to adopt strong pricing strategies for new trades in the spot market.
Moreover, demand from industry buyers persists, who are procuring cotton to replenish stocks or to meet immediate production requirements. Data from Secex indicated that Brazil exported 274.63 thousand tons of cotton in February, achieving a record for that month, although exports fell by 33.9 percent compared to January 2025. In the past year (March 2024 – February 2025), Brazilian cotton exports totaled over 2.9 million tons.
According to the latest report from the International Cotton Advisory Committee (ICAC), world cotton production for the 2024/25 season is projected to reach 25.688 million tons, representing a 0.55 percent increase from previous estimates and a 6.52 percent rise compared to the prior season. Global consumption is also expected to grow, reaching approximately 25.527 million tons, marking a year-on-year increase of 2.27 percent, resulting in a mere 0.63 percent gap between supply and demand.
Brazil’s cotton market has shown resilient growth, with prices reaching a one-year high amidst fluctuating trends. Secure international contracts and increased global demand are pivotal factors driving seller confidence in their pricing strategies. While exports achieved a record high in February, they noted a decline compared to the previous month. Looking ahead, both global production and consumption are forecasted to rise, indicating a buoyant outlook for the cotton market.
Original Source: www.fibre2fashion.com
