Cotton prices in Brazil signal potential export record ahead

According to the Center for Advanced Studies in Applied Economics (Cepea) at Esalq/USP, cotton lint prices in Brazil showed slight stability at the beginning of June.

Since June 3, the Cepea/Esalq index has fluctuated between R$3.86 and R$3.94 per pound. As of Tuesday, June 11, the average price was R$3.8690 per pound, marking a year-to-date drop of 0.86% since the start of the month.

Cepea researchers noted that some buyers are willing to pay higher prices, especially for higher-quality lots.

On the selling side, only some sellers are flexible, keeping an eye on international price drops.

There was also an increase in the pace of commercialization for cotton from the 2023/24 and 2024/25 harvests, according to Cepea’s research.

Agents continue to prioritize shipments of previously contracted cotton, with lots destined for both foreign and domestic markets.

The following chart uses DataLiner-derived data to dive into cotton exports, in containers, from Brazil between Jan 2021 and Apr 2024.

Cotton Exports in Containers | Jan 2021 – Apr 2024 | TEUs

Source: DataLiner (click here to request a demo)

Cepea researchers explain that attractive export prices maintain high export levels. In the first five working days of June, Brazil has already shipped 50.34 thousand tonnes of cotton, nearing the volume exported in the entire month of June 2023 (60.3 thousand tonnes) and indicating a potential record for the period, according to data from the Secretariat of Foreign Trade (Secex).

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