Sellers are firm, and prices are sustained in March

Cepea, April 2, 2025 – Cotton prices registered slight increases in March. This scenario is related to the fact that sellers were firm regarding prices in this offseason, since they were focused on the valuation of contracts at ICE Futures and of the Cotlook A Index (cotton delivered in the Far East).

In late March, producers were making cash with the delivery of term contracts and/or trading the soy from the new season. Purchasers, in turn, were closing only a few trades, in order to meet immediate needs and/or replenish inventories.

Comparing February 28 and March 31, the CEPEA/ESALQ Index (payment in 8 days) upped 0.92%, closing at BRL 4.2167/pound on March 31, the second consecutive month of increases. The average in March (BRL 4.2148/pound) is 8.4% above the export parity. Moreover, the monthly average was 1.71% above that in February/25, but 8.32% smaller than in March/24, in real terms (values were deflated by the IGP-DI February/25).

Cepea calculations show that the export parity FAS (Free Alongside Ship) dropped 1.34% from February 28 to March 31, to BRL 3.9248/pound (USD 0.6878/pound) at the port of Santos (SP) and BRL 3.9353/pound (USD 0.6897/pound) at the port of Paranaguá (PR) on March 31. The Cotlook A Index increased 2.13% in the same period, to USD 0.7915/pound. Dollar quotes downed 3.37% against Real, closing at BRL 5.706 on March 31.

USDA – Data released by the USDA on March 31st indicate that the 2025/25 planting in the US is expected at 3.99 million hectares, 11.76% less than in 2024/25 (4.53 million hectares) and 4.2% below that in 2023/24 (4.17 million hectares).

ICAC – Data released on April 1st by the Icac indicate that the 2024/25 global production may total 25.898 million tons, upping 0.82% compared to the report released in March/25 and 7.38% in relation to 2023/24. The consumption, in turn, is stable against the previous report, but may increase 2.27% in relation to the season before, at 25.527 million tons.

(Cepea-Brazil)