Thu, Feb 19,
Insights
Brazil's cotton prices moved within a narrow range in early February, with the CEPEA/ESALQ Index rising 1.7 per cent to BRL 3.5345 (~$0.67) per pound amid weak domestic liquidity.
Export parity and the Cotlook A Index declined, while a firmer real pressured competitiveness.
Planting for 2025–26 reached 89.19 per cent.
January exports fell 23.8 per cent year on year to 316.86 thousand tons.
Brazil’s domestic cotton prices showed slight oscillations in early February, moving between BRL 3.51 and BRL 3.54 per pound (~$0.67) as subdued demand and ample global supplies capped gains. Fluctuations in international benchmarks, exchange-rate movements and the absence of fresh economic triggers prevented a breakout from the prevailing price range, as per the Centre for Advanced Studies on Applied Economics (CEPEA).
Between January 30 and February 12, the CEPEA/ESALQ Index (payment in eight days) increased 1.7 per cent, closing at BRL 3.5345 per pound on February 12. Despite the uptick, liquidity in the domestic market remained limited. Sellers focused on export flows and summer crop harvesting to manage cash flow, while buyers refrained from replenishing inventories, citing comfortable stock levels.
In the international market, export parity FAS (Free Alongside Ship) fell 2.9 per cent from February 2 to 9, reaching BRL 3.2685 per pound (~$0.6300 per pound) at the Port of Santos (SP) and BRL 3.2790 per pound (~$0.6320 per pound) at the Port of Paranaguá (PR), according to CEPEA calculations. The Cotlook A Index declined 1.56 per cent in the same period to $0.7280 per pound. The US dollar weakened 1.31 per cent against the Brazilian real, closing at BRL 5.188, its lowest nominal level since May 28, 2024, further affecting export competitiveness.
On the production front, data from Abrapa showed that 89.19 per cent of the 2025–26 cotton crop area had been planted as of February 5, indicating steady progress in field activities.
Meanwhile, Brazil exported 316.86 thousand tons of cotton in January 2026, down 30 per cent from December and 23.8 per cent lower than the 415.6 thousand tons shipped in January last year, according to the Secretariat of Foreign Trade at the Ministry of Economy (SECEX/ME). In the partial season from August 2025 to January 2026, total shipments reached 1.72 million tons.