Brazilian cotton exports surged to new heights in January, reaching a record 415.6 thousand tons. This exceptional performance is attributed to several factors, including the surplus left from the 2023-24 cotton season, strategic sales made earlier, and favorable exchange rates, which helped to boost export activities. The value of these exports exceeded BRL 4.2 billion (approximately 3 million), making it a historic achievement for Brazil’s cotton industry, despite a noticeable decline in prices when measured in U.
S. dollars.
The average export price of Brazilian cotton fell by 2.
6% month-on-month, and a significant 11.
2% year-on-year, which is attributed to fluctuations in global cotton prices. Despite this drop in prices, the local currency value of exports rose by 12.2%, indicating a positive economic impact on the domestic market.
At the same time, domestic cotton trading remained slow, with the local market seeing less activity compared to previous months. However, the planting of the 2024-25 cotton crop was progressing well, with 82.66% of the crop already in the ground by February 6.
Looking ahead, global cotton production is expected to increase by 5.
91% in the upcoming season, signaling a steady recovery in the international cotton trade. Brazil’s strong performance in January places the country in a favorable position to maintain its competitive edge in global cotton exports for the year ahead.
