Brazil Cotton Prices Rise as Global Demand Tightens Supply Balance
Cotton prices in Brazil rose in late August, supported by firm seller offers and gains in international markets, although trading remained limited as buyers and sellers struggled to agree on prices.
The CEPEA/ESALQ Cotton Index increased 3.83 per cent between July 31 and August 31, closing at BRL 4.3648 per pound. Buyers with immediate raw-material needs showed greater willingness to purchase, particularly higher-quality cotton. However, some buyers remained cautious and offered lower prices amid difficulties in passing higher raw-material costs on to manufactured goods, keeping transactions sporadic.
International cotton prices also strengthened in late August, with ICE Futures contracts supported by firm US exports and weaker crop conditions compared with last year. The market is also being supported by global consumption exceeding production and declining stocks.
Brazil exported 73.48 thousand tonnes of lint during the partial month of August, against 77.46 thousand tonnes a year earlier. The daily average reached 4.90 thousand tonnes, up 32.8 per cent year on year, while the average export price rose 6.3 per cent to USD 0.7690 per pound.
For 2026-27, the USDA forecasts global cotton production at 25.612 million tonnes and consumption at 26.763 million tonnes, leaving ending stocks at 15.172 million tonnes. Brazil is expected to remain the world’s leading exporter, with exports of 3.3 million tonnes and production of 3.974 million tonnes.
For 2025-26, Conab estimates Brazilian output at 4.08 million tonnes, with record yield of 2,024 kg/ha offsetting a 3.2 per cent decline in planted area to 2.02 million hectares.
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