Brazil cotton prices post sharpest rise since August 2022 in March

Brazil’s cotton prices surged in March 2026, with the CEPEA/ESALQ Index crossing BRL 3.91 per pound and recording its steepest monthly increase since August 2022, driven by firm demand, seller resistance to lower prices and support from the global market.

The index rose 11.2 per cent over the month to close at BRL 3.9173 per pound on March 31. Gains in the domestic market were further supported by higher international oil prices and rising freight costs, which added upward pressure on prices, the Sao Paulo-based Center for Advanced Studies on Applied Economics (CEPEA) noted in its latest market release on cotton.

Brazil’s cotton prices jumped in March 2026, with the CEPEA/ESALQ Index rising 11.2 per cent to BRL 3.9173 per pound, the sharpest gain since August 2022, supported by firm demand, seller resistance, and higher oil and freight costs.
Despite gains, prices remained below year-ago levels, while global output is seen lower and consumption slightly higher.

On average, the index stood at BRL 3.6463 per pound in March, up 3.58 per cent from February. However, in real terms, prices remained 11.35 per cent below levels recorded in March 2025.

Looking ahead, global cotton production for the 2026-27 season is projected at 25.11 million tonnes, slightly higher than previous estimates but still below the 2025–26 forecast. Global consumption is expected to rise to 25.405 million tonnes, indicating modest demand growth.

In Brazil, cotton output is forecast at 3.75 million tonnes for 2026–27, while production for 2025–26 has been slightly revised down to 3.795 million tonnes, according to the latest CEPEA cotton outlook report.

Fibre2Fashion News Desk (CG)