Brazilian cotton loses competitiveness in the external market

The CEPEA/ESALQ cotton in lint Indicator has broken months of stability and has returned to operating below the export parity. According to a survey by Cepea, this scenario had not been recorded since December 2024. The drop reflects a set of factors, mainly in the international market, and raises the alert for the competitiveness of Brazilian cotton. As Cepea researchers explain, both the national Indicator and the export parity have accumulated devaluations throughout 2025. The negative pressure originates from three main fronts: the appreciation of the real against the dollar, the retraction of the Cotlook A Index, and the drop in cotton contracts traded on the New York Stock Exchange (ICE Futures). In the domestic scenario, the impact is direct. With the retreat of the parity, domestic prices of lint face even more resistance to react. The unfavorable international situation is added to the global geopolitical instability and the expansion of cotton supply in Brazil, ...