Cepea, February 4, 2025 – Cotton prices moved down in Brazil in January. Price drops were registered despite the high interest of the industry in purchases, aiming to meet both immediate needs and/or replenish inventories. Sellers offered new batches in the spot market and were more flexible regarding quotations in order to close some deals.
Cotton growers were focused on the progress of the planting activities of the new crop and, consequently, on weather conditions. Rains in Mato Grosso have been reducing the pace of the soy harvesting and the planting of the second cotton crop.
Between December 30, 2024, and January 31, 2025, the CEPEA/ESALQ cotton Index (payment in 8 days) dropped 1.92%, to close at BRL 4.1143 per pound on Jan. 31.
2024/25 PLANTING ACTIVITIES – Data from Abrapa (Brazilian Cotton Producers Association) show that 42.31% of the area in Brazil had been planted up to January 23.
EXPORTS – According to data from Secex, Brazil shipped 265.6 thousand tons of cotton in 12 producing days of January/25, surpassing by 6.1% the volume observed in January/24 (250.3 thousand tons), but 24.7% less than in December/24 (352.8 thousand tons). The current daily pace of exports is at 22.1 thousand tons, higher than the 11.4 thousand tons verified in Jan/24.
(Cepea-Brazil)
Centro de Estudos Avançados em Economia Aplicada – CEPEA-Esalq/USP
