Thur. 7th May 2026
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Insights Brazil's cotton prices are rising, with the CEPEA/ESALQ Index hitting its highest level since July 2025, driven by firm global prices, seller resistance and higher oil values. Spot trade remains limited as buyers struggle to pass on costs. Exports crossed 2.6 million tonnes this season, while 12-month shipments hit a record 3.09 million tonnes. |
Cotton prices in Brazil are continuing an upward trend, supported by higher global prices, firm seller resistance and rising crude oil values, according to the latest report from Sao Paulo’s Center for Advanced Studies on Applied Economics (CEPEA).
The CEPEA/ESALQ Index for cotton (eight-day payment) has reached its highest nominal level since late July 2025, reflecting tightening market conditions during the offseason.
Trading activity in the spot market remains limited, with only a small number of deals being concluded. On the demand side, industry participants reported challenges in passing on higher raw material costs to cotton yarn and downstream textile products, weighing on buying interest.
Supply dynamics show that Brazil exported more than 2.6 million tonnes of cotton between August 2025 and the fourth week of April 2026. While this is 7 per cent lower than the total shipments of 2.84 million tonnes recorded in the previous full season (August 2024 to July 2025), export momentum remains strong.
On a rolling 12-month basis, shipments reached 3.09 million tonnes through April (partial data), marking a record high for Brazilian cotton exports.
Market participants attribute the firmness in domestic prices to the combined effect of elevated international rates, reduced seller willingness to negotiate during the offseason, and support from higher oil prices, which influence fibre markets.