Cepea, October 16, 2024 – Cotton prices oscillated slightly in the first fortnight of October. As two thirds of this year’s production had been processed, the focus continues on accomplishing contracts; thus, liquidity is low in the spot market. Meanwhile, the good profitability has been attracting producers, and the area for the 2024/25 season is expected to increase.
Between September 30 and October 15, the CEPEA/ESALQ cotton Index (payment in 8 days) dropped 2.16%, to close at BRL 3.9328 per pound on Oct. 15.
According to data from Abrapa (Brazilian Cotton Producers Association), 63.67% of the 2023/24 crop had been processed up to October 10.
Conab indicates that the 2024/25 cotton area may total 2 million hectares, 2.9% up compared to that in the 2023/24 season. Productivity is likely to drop 3.1% in the same comparison, at 1,831 kg per hectare. As a result, production is expected at 3.67 million tons, 0.2% smaller than in 2023/24.
USDA – The USDA indicated on Oct. 11 that the 2024/25 global production may total 25.395 million tons, for an increase of 0.2% compared to data released in September and moving up 2.6% against that in the 2023/24 crop. The 2024/25 world consumption, in turn, is likely to amount 25.199 million tons, only 0.77% below the global supply.
ICAC – According to a report released by Icac (International Cotton Advisory Committee) on Sept. 29, the 2024/25 global production is likely to hit 25.49 million tons, 0.51% down compared to the estimate released in early September/24, but 5.67% more compared to the crop before. The world consumption continues projected at 25.87 million tons.
(Cepea-Brazil)
