17 Apr '25
(Fibre2Fashion News Desk (KD): Trade tensions between the US and China disrupted global market sentiment in early April, slowing spot market activity amid volatile futures. In Brazil, a mismatch in product quality and pricing continued to limit negotiations during the offseason.
Most 2023-24 inventories have already been sold, with remaining sellers holding firm on prices. Buyers with urgent or high-quality requirements are paying a premium, as per the Centre for Advanced Studies on Applied Economics (CEPEA).
Insights
Trade tensions between the US and China weighed on global cotton sentiment in April, while Brazil faced limited spot market activity due to quality and price mismatches.
Domestic cotton prices rose 1.97 per cent to BRL 4.2999 (~$0.73) per pound by April 15.
Globally, production is set to exceed consumption by 4.2 per cent, according to USDA projections.
As a result, domestic cotton prices climbed to BRL 4.2999 (~$0.73) per pound on April 15, 2025, up 1.97 per cent from March 31, reaching their highest nominal level since early March.
According to National Supply Company’s (CONAB) April 10 report, Brazil's 2024-25 cotton crop is expected to hit a record 3.89 million tonnes—up 5.1 per cent year-on-year—driven by a 6.9 per cent rise in planted area and a 1.7 per cent increase in yield.
Globally, the USDA projects cotton production at 26.32 million tonnes for 2024-25, a 7 per cent rise from the previous year, with consumption seen at 25.26 million tonnes, leaving supply 4.2 per cent above demand. (Source: Fibre2Fashion.com)