In the 2022-23 seasons, Brazil witnessed a record-breaking increase in cotton production, propelled by higher cultivation and production, as reported by the Center for Advanced Studies on Applied Economics (CEPEA). During off-season, cotton prices in Brazil experienced a notable decline from January to May, influenced by weakened demand and optimistic expectations for a bountiful crop. Export activities slowed down in early 2023, attributed to prices that sellers found unattractive.

Monthly average prices exhibited stability between May and June, followed by reaching the lowest point of the year in July. Subsequently, fluctuations in monthly averages decreased as a result of rising exports, which helped alleviate the domestic surplus. The report highlighted challenges in 2023, including logistical issues and increased transportation costs due to declining product quality.

The CEPEA/ESALQ Index for cotton recorded a significant drop of 24.4 per cent in 2023. The cotton cultivation area expanded by 4 per cent, reaching 1.664 million hectares in the 2022-23 period, according to CONAB. Productivity experienced a notable increase of 19.5 per cent, reaching 1,907 kg per hectare. Overall production saw a substantial rise of 24.2 per cent, reaching 3.173 million tons.

Globally, supported by heightened supply from China, India, and Brazil, the USDA reported 1.8 per cent increase in global cotton production to 25.395 million tons in 2022-23. Notably, production in the US and Pakistan witnessed a significant decrease during this period, according to the association's findings.