Brazil’s cotton prices reached a one-year high in mid-March, with CEPEA reporting a 1.92% increase in the CEPEA/ESALQ Index. International market contracts are being secured at higher values, while exports show a record for February despite a decline from January. Global cotton production and consumption are projected to rise in the upcoming season.
In mid-March, Brazil’s cotton market experienced notable price fluctuations, though the general trend remained positive. According to the Centre for Advanced Studies on Applied Economics (CEPEA), the CEPEA/ESALQ Index reached a one-year peak during this period. From February 28 to March 14, the Index increased by 1.92%, ultimately closing at BRL 4.2582 (approximately $0.75) per pound, marking the highest level since March 14, 2023.
Market participants are particularly focused on securing term contracts for the international market, wherein recent transactions have been completed at values surpassing domestic prices. This trend has fostered a sense of confidence among sellers, prompting them to adopt firm pricing for new spot market trades. Concurrently, demand remains strong as industry buyers seek to replenish their inventories or fulfill immediate production requirements.
Data from Secex indicates that Brazil exported 274.63 thousand tons of cotton in February, setting a record for that month. However, this figure represents a 33.9% decrease when compared to January 2025. Over the past year, from March 2024 to February 2025, Brazilian cotton exports exceeded 2.9 million tons.
The International Cotton Advisory Committee (ICAC) forecasts that global cotton production for the 2024/25 season may reach 25.688 million tons, a 0.55% increase from previous estimates and a 6.52% rise from the 2023/24 season. Additionally, global cotton consumption is anticipated to rise, projected at 25.527 million tons, reflecting a 2.27% year-on-year increase, resulting in a narrow gap of 0.63% between supply and demand.
The Brazilian cotton market has experienced a significant rise in prices, culminating in the highest figures in a year by mid-March. While international demand remains robust, recent fluctuations in exports and the increase in global production highlight ongoing dynamics within the market. Understanding these trends is crucial for stakeholders engaged in cotton trading and production.
Original Source: www.fibre2fashion.com
