Brazil cotton prices edge up in March on firm selling, global cues

Cotton prices in Brazil posted modest gains in March 2025, supported by firm selling behaviour amid the offseason and favourable international indicators. Sellers held prices steady, encouraged by rising values in ICE Futures and the Cotlook A Index for Far East deliveries, according to Center for Advanced Studies on Applied Economics (CEPEA).

Brazilian cotton prices rose modestly in March 2025, driven by firm seller stances and higher ICE Futures and Cotlook A Index values.
Producers focused on delivering term contracts and selling soy, while buyers acted cautiously.
The CEPEA/ESALQ Index rose 0.92 per cent, and the Cotlook A Index gained 2.13 per cent amid a stronger Real and shifting global forecasts.

Buyers, on the other hand, operated cautiously, securing volumes only to meet immediate needs or replenish low inventories. Producers, meanwhile, focused on fulfilling existing term contracts and marketing soybeans from the new crop.

The CEPEA/ESALQ Index (with 8-day payment) increased by 0.92 per cent from February 28 to March 31, reaching BRL 4.2167 per pound on the last day of the month — marking the second consecutive monthly rise. March’s average of BRL 4.2148 per pound was 1.71 per cent higher than February’s and 8.4 per cent above the export parity level. However, when adjusted for inflation, it remained 8.32 per cent lower year-on-year.

Export parity (FAS) values fell slightly, with cotton quoted at BRL 3.9248/pound (USD 0.6878/pound) at the port of Santos and BRL 3.9353/pound (USD 0.6897/pound) at Paranaguá as of March 31, down 1.34 per cent from February 28. Meanwhile, the Cotlook A Index climbed 2.13 per cent in the same period to USD 0.7915/pound. The Brazilian Real also strengthened 3.37 per cent against the US dollar, closing at BRL 5.706, CEPEA said in its latest fortnightly report on the Brazilian cotton market.

In international developments, the USDA reported on March 31 that US cotton planting for the 2025/26 season is expected to cover 3.99 million hectares, an 11.76 per cent drop from 2024/25 and 4.2 per cent below 2023/24 levels.

Global production forecasts have also been updated. According to the International Cotton Advisory Committee (ICAC), global output in 2024/25 may reach 25.898 million tonnes — a 0.82 per cent increase from the previous forecast and 7.38 per cent more than the 2023/24 season. Consumption is expected to remain stable month-on-month but grow 2.27 per cent year-on-year to 25.527 million tonnes.

Fibre2Fashion News Desk (HU)