Brazil cotton prices hit lowest real level since 2009 in October

Spot market activity remained limited, with trades mostly aimed at meeting immediate needs or supporting cash flow. Many market participants stayed focused on fulfilling existing term contracts, while producers concentrated on new grains crop activities. However, transactions for 2024-25 and 2025-26 cotton saw steady movement during the month, CEPEA said in its latest fortnightly report on the Brazilian cotton market.

The CEPEA/ESALQ Index (payment in 8 days) fell 4.63 per cent in October, averaging BRL 3.5176 (~$0.66) per pound, down 5.16 per cent month-on-month and 12.7 per cent year-on-year. Export parity FAS rose 0.7 per cent in the period, reaching BRL 3.6129 per pound at Santos and BRL 3.6234 per pound at Paranaguá on October 31. The Cotlook A Index edged down 0.39 per cent to $0.7740 per pound, while the US dollar gained 1.07 per cent against the Real, closing the month at BRL 5.381.

Global cotton area for 2025-26 is projected at 30.42 million hectares, down 0.64 per cent year-on-year, according to ICAC. Slightly higher yields are expected to keep world output stable at around 25.4 million tonnes. Global consumption is forecast to decline 1.52 per cent from last month’s estimate, reaching 25.01 million tonnes.

In Brazil, cotton area in 2025-26 is expected to rise 11.46 per cent, offsetting an estimated 4.92 per cent decline in productivity. This would result in output of around 3.921 million tonnes, an increase of 5.97 per cent compared to 2024-25.

ALCHEMPro News Desk (KD)