Brazil cotton prices fall in August amid strong harvest progress

The CEPEA/ESALQ Index dropped 5.5 per cent from July 31 to August 29, closing at BRL 3.9068 (~$0.71) per pound. Sellers showed flexibility, but buyers pressed for lower quotations, CEPEA said in its latest fortnightly report on the Brazilian cotton market.

For the 2024-25 season, National Supply Company (CONAB) estimates national cotton output at 3.94 million tons, up 6.3 per cent year-on-year, with planted area expanding 7.3 per cent to 2.09 million hectares. Productivity, however, may ease 0.9 per cent to 1,887 kilos per hectare. By August 21, Brazilian Cotton Producers Association (ABRAPA) reported 60.06 per cent of crops harvested and 20.92 per cent processed.

Trading has been active: BBM data shows nearly 958,500 tons contracted by August 25, covering 24 per cent of projected output. Of this, 367,730 tons were for exports, 483,250 tons for the domestic market, and 107,490 tons via flex contracts.

Exports slumped sharply in August, with shipments at 58,350 tons in 16 days—54.1 per cent below July 2025 levels and nearly 48 per cent down from August 2024. The daily average dropped to 3,650 tons from 5,080 tons a year earlier. Export prices averaged $0.7220 per pound, down 1.8 per cent month-on-month and 9.4 per cent year-on-year. In reais, export prices (BRL 3.9364/lb) remained below domestic levels for the fifth straight month.

ALCHEMPro News Desk (KD)