As a leading cotton exporter, Brazil’s cotton market witnessed a mixed trend in mid-April 2026, with domestic trading activity slowing even as exports surged to record levels, according to the Center for Advanced Studies on Applied Economics (CEPEA). The slowdown in local trade was largely driven by price fluctuations and subdued demand, while strong international shipments—particularly to China—continued to support export performance.
In March 2026, Brazil exported 347,800 tons of cotton, marking a sharp increase of 28.6% compared to February and 45.4% higher than March 2025. This represents the highest export volume ever recorded for the month of March and the strongest performance since December 2025, when shipments reached 452,500 tons.
On a rolling 12-month basis, Brazil’s cotton exports climbed to 3.032 million tons, surpassing the 3.026 million tons recorded in 2025, as per data from Secex, the Secretariat of Foreign Trade. Shipments to China played a crucial role in sustaining export momentum, despite divergence between domestic prices and export parity levels.
Domestically, cotton prices remained firm despite intermittent declines. CEPEA noted that weaker demand contributed to temporary price drops, while sellers maintained a strong stance on premium-quality cotton, supporting overall price levels in the market.
Reflecting this trend, the CEPEA/ESALQ Index (payment in 8 days) rose by 1.52% between March 31 and April 15, closing at BRL 3.9769 per pound. The index indicates continued resilience in pricing, even amid market volatility.
Meanwhile, production outlook data released by Brazil’s National Supply Company (Conab) showed a modest increase of 1.39% in planted area month-on-month. However, the total cultivated area remains 2.1% lower than the previous season, at 2.042 million hectares.
Average productivity is estimated at 1,883 kilograms per hectare, reflecting a marginal decline of 0.12% compared to the previous month and a more significant drop of 3.8% year-on-year. As a result, Brazil’s cotton output is projected to reach 3.843 million tons—up 1.27% from earlier estimates but still 5.8% lower than the 2024–25 crop.
Overall, while Brazil’s domestic cotton trade shows signs of caution, the country’s export strength continues to reinforce its position as a key global supplier in the cotton market.
Source: Fibre2Fashion
(Rewritten & adapted by Indian-Apparel.com News Desk)
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