Cotton price reaches lowest real level in 16 years

The average price of cotton lint in Brazil fell in October to the lowest real level since 2009, according to Cepea. The CEPEA/ESALQ Indicator (payment in eight days) stood at R$ 3.5176/pound-weight, representing contractions of 5.16% from September and 12.7% compared to October 2024, already considering inflation correction by the IGP-DI. This historic devaluation reflects a combination of factors. National production reaches a record level, while domestic consumption and exports continue at a slower pace. Added to this is the retreat of international quotations and the fall of the dollar, which reduces the competitiveness of Brazilian lint abroad. With this scenario, the spot market operated in a limited manner. According to Cepea, negotiations occurred punctually, with agents focused on fulfilling term contracts. Liquidity, therefore, was restricted, and many producers maintained their focus on field operations for the planting of the next grain crop. Despite the contraction in ...