Brazil’s cotton prices weakened in mid-July as cautious textile demand and quality concerns over available stocks weighed on the spot market, despite improved export parity.
Meanwhile, Conab raised its 2025/26 production forecast to 4.06 million tonnes, while the USDA also increased Brazil’s 2026/27 output estimate, though both remain below the previous season’s levels.
Cotton growers remained focused on harvesting and fulfilling forward contracts. While some producers sought to sell remaining 2024/25 crop stocks, others maintained firm asking prices, limiting spot market liquidity.
Brazil’s National Supply Company (Conab) raised its forecast for 2025/26 cotton production to 4.06 million tonnes, up 2.05 per cent from its previous estimate, though still 0.5 per cent below the 2024/25 crop. Average yield is projected at 2,011 kg per hectare, while the planted area is estimated at 2.02 million hectares, down 3.2 per cent year on year.
Meanwhile, the USDA’s July outlook projected global cotton production for the 2026/27 season at 25.53 million tonnes, up 1 per cent from the previous forecast but 3.8 per cent lower than the 2025/26 season. Production forecasts for both Brazil and the United States were revised higher by 3 per cent, although output in both countries is still expected to remain below last season’s levels.
Fibre2Fashion News Desk (CG)
