Brazil’s cotton prices saw a modest increase in March 2025, driven by firm seller behavior and positive global market cues.
Sellers remained confident, bolstered by rising values in ICE Futures and the Cotlook A Index for Far East deliveries, according to the Center for Advanced Studies on Applied Economics (CEPEA). The CEPEA/ESALQ Index rose by 0.92%, reaching BRL 4.2167 per pound by the end of March.
Producers focused on fulfilling term contracts and selling soybeans, while buyers acted with caution, purchasing cotton primarily to meet immediate needs or replenish low inventories.
Despite the higher local prices, cotton export parity fell slightly, with the price at the ports of Santos and Paranaguá dropping by 1.34%.
Meanwhile, global cotton production forecasts were updated by the International Cotton Advisory Committee (ICAC), predicting a 0.82% increase in global output for the 2024/25 season, signaling an optimistic outlook for cotton supply. However, U.S. cotton planting for the 2025/26 season is expected to drop by 11.76%.
Overall, while Brazil’s cotton prices saw gains, cautious market activity and evolving global forecasts continue to shape the industry.
