Brazilian cotton prices fall as 2024-25 harvest nears completion
Cotton prices in Brazil moved down in early September due to the progress of harvesting and processing activities of the 2024-25 season, which boosted the availability of batches and encouraged sellers to be more flexible about quotations. Decreases in dollar values abroad also reinforced the downward trend in the domestic market, as per the Centre for Advanced Studies on Applied Economics (CEPEA).
Due to constant price drops, many sellers stayed away from closing trades in the spot market, preferring to accomplish term contracts, which were closed at more attractive values compared to current ones. Purchasers, in turn, were closing only a few deals.
The CEPEA/ESALQ Index (payment in 8 days) decreased 6.05 per cent between August 29 and September 15, closing at BRL 3.6703 (~$0.69) per pound on September 15. On September 12, it closed at BRL 3.6590 per pound, the lowest value since early July 2023, in nominal terms (BRL 3.7047 per pound), CEPEA said in its latest fortnightly report on the Brazilian cotton market.
According to data from Brazilian Cotton Growers Association (ABRAPA), 90.83 per cent of 2024-25 crops had been harvested and 30.65 per cent had been processed until September 4.
International Cotton Advisory Committee (ICAC) estimates the global area at 30.8 million hectares in 2025-26, for a decrease of 0.76 per cent compared to the previous crop. Productivity is expected to move up 1.4 per cent to 829.18 kilos per hectare, resulting in production at 25.55 million tons, up 0.63 per cent year-on-year. World consumption is likely to reach 25.519 million tons.
In Brazil, production may increase 7.19 per cent to the record of 3.92 million tons in 2025-26, sustained by the higher area. Domestic consumption is likely to reach 752 thousand tons, up 0.27 per cent compared to the season before, the highest since 2014-15 (801 thousand tons).
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