18 Mar '25
(Fibre2Fashion News Desk (HU): Cotton prices continued to show fluctuations in the first fortnight of March; however, the overall trend remained upward, as per the Centre for Advanced Studies on Applied Economics (CEPEA).
Insights
Cotton prices fluctuated in early March but maintained an upward trend, with the CEPEA/ESALQ Index reaching ~$0.75/lb, the highest in a year.
Market players prioritised international contracts, while demand continued.
Brazil exported 274.63 thousand tons in February, down 33.9 per cent from January.
ICAC forecasts 2024/25 global cotton production at 25.688 million tons.
Despite slight variations, the CEPEA/ESALQ Index recorded its highest value in one year by mid-March. Between February 28 and March 14, the Index (payment in eight days) rose by 1.92 per cent, closing at BRL 4.2582 (~$0.75) per pound—the highest level since March 14, 2023 (BRL 4.2754 per pound), in nominal terms. Market players remain focused on securing term contracts, particularly for the international market, where transactions have been finalised at higher values than those observed domestically, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
Recent price increases in the global market have bolstered sellers’ confidence, leading them to maintain firm pricing strategies for new spot market trades. Meanwhile, demand continues, with industry buyers acquiring batches to replenish inventories or meet immediate production needs.
Data from Secex reveal that Brazil shipped 274.63 thousand tons of cotton in February, marking a record high for the month. However, exports fell by 33.9 per cent compared to January 2025. Over the past 12 months (March 2024 – February 2025), Brazilian cotton exports surpassed 2.9 million tons.
The latest report from the International Cotton Advisory Committee (ICAC) indicates that world cotton production for the 2024/25 season could reach 25.688 million tons, reflecting a 0.55 per cent increase from the February estimate and a 6.52 per cent rise compared to 2023/24.
Global cotton consumption is also projected to grow, with estimates reaching 25.527 million tons, an increase of 2.27 per cent year-on-year, leaving only a 0.63 per cent gap between supply and demand.
(Source: Fibre2Fashion.com)