Brazil’s cotton market softened in early June as ample export volumes and a behind-schedule harvest weighed on domestic prices. According to CEPEA, the domestic cotton price index fell by nearly 2.9 percent in the first half of June, dropping to about BRL 3.99 per pound—amid limited farmer participation and buyers holding back due to quality concerns.
A complication behind the price dip is the lagging harvest. As older stock remains in warehouses, some producers are easing prices to make room for newer cotton. At the same time, others with sufficient cash flow are resisting price cuts, delaying their sales in hopes of better offers.
On the export front, Brazil continues to make strides, having overtaken the US as the world’s top cotton shipper in 2023–24. The South American nation dispatched approximately 12.4 million bales compared with the United States’ 11.8 million bales. Exports remain strong, though early June volumes dipped by over 30 percent compared to April, falling to around 157,700 tons.
Looking ahead, the 2024–25 harvest season shows promise. With planted area up roughly 10 percent year‑on‑year and a projected output of nearly 3.95 million tons, analysts expect a robust crop if weather conditions hold. However, until new cotton hits the market and global demand strengthens, prices may remain under pressure.
In summary, Brazil’s cotton sector is navigating a transitional phase balancing backed-up supply, cautious domestic sales, and strong export positioning, while waiting on the next harvest and global market dynamics for a price resurgence.
