April 30, 20262 views0 shares
CEPEA Cotton Lint Indicator Reaches 9-Month High
Brazil's cotton prices continue to rise, with the CEPEA/ESALQ cotton lint indicator reaching its highest nominal level in nine months, according to the University of São Paulo research center. This upward trend is primarily driven by firm international quotations, cautious selling by Brazilian traders during the off-season, and contributing factors like elevated oil prices and climatic conditions in Brazil and the United States.
According to the University of São Paulo's Center for Advanced Studies on Applied Economics (CEPEA), cotton prices in Brazil continue their upward trajectory. The CEPEA/ESALQ cotton lint indicator (based on eight-day payment terms) has now reached its highest nominal level since late July 2025, marking a nine-month peak. This significant increase is attributed to several key factors.
Primarily, firmer international cotton quotations are providing strong support for domestic prices. Additionally, Brazilian sellers are adopting a cautious stance during the current off-season, which limits supply and contributes to price appreciation. Furthermore, high global oil prices play an indirect role, as petroleum is a crucial raw material for synthetic fibers; its elevated cost makes natural fibers like cotton more competitive. Lastly, climatic conditions in major cotton-producing regions, including Brazil and the United States, are also influencing market expectations and price movements.
CEPEA researchers indicate that in the spot market, transactions are currently occurring on a punctual basis, primarily aimed at fulfilling immediate needs and replenishing existing stock. Larger volume trades are less common, with market participants focusing on targeted purchases to address urgent requirements.
