In Brazil, the area dedicated to cotton has expanded annually, driven by favourable profitability, technological advancements, and the high quality of the produce. Although domestic demand has seen only a modest rise, the growing surplus has been balanced by increases in international prices, sustaining cotton prices in the local market, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
In 2024, the CEPEA/ESALQ cotton index in Brazil saw prices fluctuating within a narrow range. The lowest price recorded was BRL 3.8063 (~$0.62) per pound, with the highest reaching BRL 4.3645 (~$0.71) per pound. Despite these fluctuations, average prices remained below those of 2023 throughout most of the year.
The 2023-24 crop season in Brazil witnessed a significant 16.9 per cent increase in planted area from the previous year, reaching 1.944 million hectares—the highest since the 1991-92 season. However, productivity slightly declined by 0.18 per cent. Despite this, the output for the season is estimated at a record 3.7 million tons, marking an increase of 16.64 per cent compared to the previous season. These figures underscore Brazil's strengthening position in the global cotton market.
ALCHEMPro News Desk (KD)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
