Insights
- Brazilian cotton exports hit record highs in January, with shipments reaching 415.6 thousand tons and revenue exceeding BRL 4.2 billion (~$733 million).
- Despite a drop in USD prices, local currency values rose.
- Domestic trading remained slow, while 82.66 per cent of the 2024-25 crop was planted.
- Global cotton output is forecast to rise 5.91 per cent to 25.548 million tons, per ICAC.
Brazilian cotton exports have reached record volumes, driven by a substantial surplus from the 2023-24 season and strategic sales timed with favourable currency movements. In January, revenue from cotton shipments exceeded BRL 4.2 billion (~$733 million), setting a new milestone for the sector, according to a report from the Center for Advanced Studies on Applied Economics (CEPEA).
Brazil exported 415.6 thousand tons of cotton in January, the highest volume ever recorded for the month, according to data from the Secretariat of Foreign Trade (Secex). Over the past 12 months (February 2024 to January 2025), total exports surpassed 2.9 million tons, another all-time high for the period.
Despite this strong performance, the average price of exported cotton stood at $0.7756 per pound, marking a 2.6 per cent decline from the previous month and an 11.2 per cent drop year-on-year. However, in local currency terms, the price reached BRL 4.6653 per pound, 12.2 per cent higher than the domestic market value, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
While exports thrived, domestic trading remained sluggish in early February. Between January 31 and February 14, the CEPEA/ESALQ Cotton Index (with payment in eight days) recorded only a slight increase of 0.11 per cent, closing at BRL 4.1187 per pound on February 14.
The latest data from the Brazilian Cotton Producers Association (Abrapa) indicates that 82.66 per cent of the projected cotton planting area for the 2024-25 season had been cultivated as of February 6.
According to the International Cotton Advisory Committee (ICAC), global cotton production for the 2024/25 season is expected to reach 25.548 million tons, a 5.91 per cent increase from the previous season.
Source: https://www.fibre2fashion.com/