The CEPEA/ESALQ Cotton Index increased 0.31 per cent between July 31 and August 17, reaching BRL 4.2171 per pound on August 17, according to the Sau Paulo’s Center for Advanced Studies on Applied Economics (CEPEA).
Brazilian cotton prices rose in early August as higher international prices and firm sellers pushed domestic values closer to export parity.
The CEPEA/ESALQ Index increased 0.31 per cent to BRL 4.2171 per pound on August 17.
Brazil’s July exports fell 29 per cent month on month but rose 22 per cent year on year, while global 2026/27 demand is forecast to exceed supply by 4.55 per cent.
Brazil exported 154.97 thousand tonnes of cotton in July, down 29 per cent from June but 22 per cent higher than in July 2025, according to data from Secex.
Global cotton production is projected at 25.24 million tonnes in the 2026/27 season, according to a July 30 report by Cotton Outlook. The estimate is 1.57 per cent lower than the June forecast and 5.6 per cent below projected output for the 2025/26 season of 26.733 million tonnes.
Brazil’s cotton production for 2026/27 was maintained at 3.75 million tonnes. For the 2025/26 season, output was revised 2.14 per cent higher between June and July to 4.06 million tonnes.
Global cotton consumption in 2026/27 is forecast at 26.38 million tonnes, up 0.88 per cent from the June estimate but 0.62 per cent below the previous season. Based on the projections, global demand could exceed supply by around 4.55 per cent.
The combination of tighter global supply expectations, firm international prices and seller resistance is supporting Brazilian cotton prices, although trading activity remains constrained by differences over prices and quality.
Fibre2Fashion News Desk (CG)
