Brazil cotton prices firm in May; CONAB sees record 2024-25 output

Cotton prices in Brazil ended May on a firm note, supported by limited supply during the offseason and by producers holding firm on quotations, citing limited stocks and recent movement in international prices, as per the Centre for Advanced Studies on Applied Economics (CEPEA).

The CEPEA/ESALQ Index rose 0.7 per cent between April 30 and May 30, settling at BRL 4.4176 (~$0.782) per pound.

Despite strong domestic prices, Brazil's cotton exports dropped to 157.7 thousand tons in the first 16 days of May—down 34 per cent from April and 31.2 per cent year-on-year. Cumulative exports in the 2024-25 season (August to May) totalled 2.54 million tons, 5 per cent below the previous season, the CEPEA said in its latest fortnightly report on the Brazilian cotton market.

Meanwhile, Brazil’s national supply agency CONAB forecasts a record cotton output of 3.9 million tons for the 2024-25 crop, up 5.5 per cent from 2023-24. While planted area is projected to increase by 7.2 per cent to 2.084 million hectares, productivity is expected to decline slightly by 1.6 per cent to 1,874 kg/ha.

ALCHEMPro News Desk (HU)