In early September 2024, Brazilian cotton prices experienced significant fluctuations, reflecting the volatility in the global market.
The average price of Brazilian cotton ranged between BRL 3.90 and BRL 4.10 per pound, marking a notable variation compared to the previous month. This oscillation is attributed to several factors, including supply chain disruptions, fluctuating demand, and uncertain weather conditions impacting crop yields.
The price of cotton in the São Paulo market saw a peak of BRL 4.15 per pound during the first week of September, driven by a surge in export demand.
However, by mid-month, prices had dipped to BRL 3.85 per pound as international market uncertainties and potential trade barriers created a bearish trend.
On the supply side, the Brazilian Cotton Producers Association (ABRAPA) reported a 5% increase in production compared to the previous year, with an estimated 1.
2 million bales harvested in the first quarter of the 2024-25 season. Despite this increase, the market remains susceptible to price swings due to global economic conditions and ongoing logistical challenges.
In the global context, Brazil’s cotton prices are closely tied to fluctuations in major cotton-producing countries such as the United States and India.
As Brazil continues to navigate these market dynamics, industry stakeholders are closely monitoring trends to adjust strategies and mitigate potential impacts on the cotton sector.
