Between August 30 and September 13, the CEPEA/ESALQ cotton index (payment in 8 days) saw a modest increase of 1.2 per cent, closing at BRL 3.9321 (~$0.71) per pound on September 13.
This slight recovery comes after a significant decline in August when cotton prices dropped due to lower export parity and international price decreases. Sellers, needing to improve cash flow, coupled with the progress in both harvesting and processing activities, further drove prices down. From July 31 to August 30, the CEPEA/ESALQ cotton index fell by 4.65 per cent, marking the sharpest drop since March 2024, when prices plunged 6.3 per cent.
According to the Brazilian Cotton Producers Association (ABRAPA), 95.53 per cent of the 2023-24 cotton crop had been harvested by September 5, with 40.3 per cent of the total production already processed, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
Globally, data from the International Cotton Advisory Committee (ICAC), released on September 4, projects that global cotton production for 2024-25 will reach 25.62 million tonnes, a 2.7 per cent decrease compared to August 2024 estimates but still 6.21 per cent higher than the previous season. Global consumption remains stable, estimated at 25.87 million tonnes, a 3.56 per cent increase over the 2023-24 crop year.
Fibre2Fashion News Desk (KD)