The Centre for Advanced Studies on Applied Economics (CEPEA) reports that although cotton prices showed swings in the first fortnight of March, generally the trend stayed higher.
Mid-March saw the CEPEA/ESALQ Index post its highest value in one year despite minor variances. The Index (payment in eight days) increased by 1.92% between February 28 and March 14, closing at BRL 4.2582 (~$0.75), the highest level since March 14, 2023 (BRL 4.2754 per pound). In nominal terms.
Market players are focused on obtaining term contracts, especially for the overseas market, where transactions have been finalised at greater values than those recorded domestically, CEPEA stated in its latest fortnightly report on the Brazilian cotton market.
Global market price rises recently have given sellers more confidence, which has helped them to keep strict pricing policies for new spot market transactions. Demand is still high meantime; industrial purchasers are buying batches to either meet immediate production needs or restocking inventory.
According to Secex data, Brazil recorded a record high for February with 274.63 thousand tonnes of cotton transported. Comparatively to January 2025, shipments dropped by 33.9% nevertheless. Brazilian cotton exports topped 2.9 million tonnes for the last 12 months, March 2024 – February 2025.
Reflecting a 0.55% increase from the February estimate and a 6.52% rise over 2023/24, the latest report from the International Cotton Advisory Committee (ICAC) shows that world cotton production for the 2024/25 season might reach 25.688 million tonnes.
With projections reaching 25.527 million tonnes, an increase of 2.27% year-on-year, global cotton consumption is also expected to rise and leave only a 0.63% difference between supply and demand.
