Cepea, March 17, 2025 – Cotton prices continued to oscillate; however, the upward trend remained in the first fortnight of March. Therefore, in spite of slight variations, the value in mid-March is the highest in one year. Comparing February 28 and March 14, the CEPEA/ESALQ Index (payment in 8 days) increased 1.92%, closing at BRL 4.2582/pound on March 14, the highest level since March 14 last year (BRL 4.2754/pound), in nominal terms.
Players continue to prioritize term contracts, especially to the international market – most deals were closed at higher values compared to those verified in the domestic market. Moreover, recent increases in the international market favor sellers to be firm regarding prices of new trades in the spot market. As for the demand, the industry has been purchasing some batches in the spot market, aiming to replenish inventories and/or meet immediate needs.
EXPORTS – According to data from Secex, 274.63 thousand tons of cotton were shipped in February, a record for the month, but 33.9% less than in January/25. In 12 months (from March/24 to February/25), exports surpassed 2.9 million tons.
ICAC – Data released by Icac indicate that the 2024/25 world crop may total 25.688 million tons of cotton, 0.55% up in relation to the report released in February and 6.52% above that observed in 2023/24. The global consumption may total 25.527 million tons, 2.27% higher than in 2023/24 and only 0.63% below the supply.
(Cepea-Brazil)
Centro de Estudos Avançados em Economia Aplicada – CEPEA-Esalq/USP
