Despite minor variations, the CEPEA/ESALQ Index for cotton prices in Brazil reached its highest point in a year by mid-March, as per by the Centre for Advanced Studies on Applied Economics (CEPEA).
From February 28-March 14, 2025m the Index (with payment in eight days) increased by 1.92 per cent, closing at BRL 4.2582 (approximately $0.75) per pound. This is the highest level since March 14, 2023 (BRL 4.2754 per pound), in nominal terms.
Market participants are primarily focused on securing long-term contracts, particularly for the international market, where deals have been finalized at higher prices than those seen domestically, CEPEA stated in its latest bi-weekly report on the Brazilian cotton market.
Recent price increases in the global market have strengthened sellers' confidence, leading them to maintain firm pricing strategies for new spot market transactions. Meanwhile, demand remains steady, with industry buyers purchasing batches to replenish inventories or fulfill immediate production requirements.
As per data from Secex, Brazil exported 274.63 thousand tons of cotton in February, a record high for that month. However, exports decreased by 33.9 per cent compared to January 2025. Over the past 12 months (March 2024 – February 2025), Brazilian cotton exports exceeded 2.9 million tons.
The latest report from the International Cotton Advisory Committee (ICAC) indicates that global cotton production for the 2024/25 season could increased by 0.55 per cent to 25.688 million tons, in March, registering a 6.52 per cent rise compared to 2023/24.
Global cotton consumption is also projected to increase, with estimates reaching 25.527 million tons, a 2.27 per cent Y-o-Y rise. This leaves only a 0.63 per cent difference between supply and demand.
