Brazil cotton prices 15.9% below international market in October

The monthly average price (CEPEA/ESALQ Cotton Index) was $0.7060 per pound in October, 1.5 per cent lower than that recorded in September, primarily due to a 1.5 per cent rise in the exchange rate during the period (BRL 5.6262 in October 2024). The Cotlook A Index increased by 1.6 per cent to $0.8373 per pound, and the first contract at ICE Futures NY rose by 1.1 per cent to $0.7166 per pound.

As a result, the average price in Brazil (Index in dollars) was 15.9 per cent lower than the international market average (Cotlook A Index). This marks the largest gap since March 2024. In October 2023, the price difference was 17 per cent, CEPEA said in its latest fortnightly report on the Brazilian cotton market.

Between September 30 and October 31, the CEPEA/ESALQ Cotton Index (for payment in 8 days) decreased by 2.14 per cent, closing at BRL 3.9335 per pound on October 31.

Data from the Secretariat of Foreign Trade at the Ministry of Economy (SECEX/ME) indicates that Brazil exported 165.9 thousand tonnes of cotton during 14 production days in October, 26.5 per cent less than in October 2023 (225.7 thousand tonnes). However, the daily average of exports was 11.8 thousand tonnes, 10.25 per cent higher than the 10.7 thousand tonnes recorded in October 2023.

Fibre2Fashion News Desk (KD)