Brazil's cotton export up despite domestic market liquidity challenges

The initial 11 days of March saw a remarkable leap in cotton exports, hitting 125.03 thousand tonnes—a 65 per cent increase compared to the same period last year, according to data from the Secretariat of Foreign Trade (SECEX). This surge aligns with a substantial uptick in the daily shipment average, now at 11.366 thousand tonnes, dwarfing the March 2023 figure of 3.296 thousand tonnes, CEPEA said in its latest fortnightly report on the Brazilian cotton market.

This export boom contributes to an impressive season tally, with Brazil shipping 1.754 million tonnes from August 2023 up to March 2024, marking a 21.1 per cent rise from the previous season's total.

Despite this international success, the domestic spot market remains tepid, with both buyers and sellers showing reluctance in closing new deals, often clashing over price and quality standards.

Reflecting the domestic market's inertia, the CEPEA/ESALQ cotton index witnessed a 6.3 per cent decline in March, settling at BRL 4.0894 (~$0.81) per pound. This contrast between domestic stagnation and export vigour highlights the shifting dynamics in Brazil's cotton trade, emphasising the growing importance of the international market amidst local uncertainties.

Fibre2Fashion News Desk (KD)