Wed, Mar 18,
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Insights Brazil cotton prices rose in early March, supported by firm seller behaviour, while buyers with immediate needs showed flexibility despite limited liquidity. The CEPEA/ESALQ Index gained 3.62 per cent. Export trends were mixed, with February shipments down but early March volumes strong. Crop progress and global factors like oil and freight remain key watchpoints. |
Brazil’s cotton prices have mostly increased in early March, supported by firm seller behaviour, while buyers with immediate requirements showed greater flexibility in closing deals.
“However, market liquidity remained limited during the period, with participants closely monitoring geopolitical tensions and their potential impact on oil prices, freight rates and input costs,” the Sao Paulo-based Center for Advanced Studies on Applied Economics (CEPEA) said in its latest market release on cotton.
The CEPEA/ESALQ Index (payment in eight days) rose 3.62 per cent between February 27 and March 16, closing at BRL 3.6501 per pound, reflecting the upward trend in domestic prices.
On the supply side, producers continued to track crop development. According to Conab, around 44 per cent of Brazil’s 2025-26 cotton crop is currently in the vegetative stage.
Export data showed mixed trends. Brazil exported 270.5 thousand tons of cotton in February, down 14.6 per cent from January and 1.5 per cent lower than the same month last year, according to Secex, the Foreign Trade Secretariat of Brazil. However, cumulative shipments for the 2025–26 season (August 2025-February 2026) reached 2.08 million tons.
In contrast, export momentum strengthened in early March, with 87.9 thousand tons shipped in the first week alone. The daily average stood at 17.58 thousand tons, significantly higher than 12.59 thousand tons in March 2025. If this pace continues, total exports could reach 386.8 thousand tons this month, CEPEA added.