Global Cotton Trade Dynamics Shift: Australia Sets Export Record, Brazil Sees Surge

Recent trade data from major global cotton exporters Australia and Brazil highlights an active global cotton supply chain and evolving market dynamics.

In Australia, cotton exports reached a record high of 894,000 bales (approximately 194,000 tons) in October, setting an all-time monthly record for that period. The primary destinations for exports were India (accounting for 34.6%), China (28%), Vietnam (17.6%), and Bangladesh (5%). India, benefiting from a tariff-free import window, continued its concentrated purchasing, emerging as the largest destination. Cumulative cotton exports from Australia from March to October 2025 have approached 4 million bales. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) forecasts that Australia's cotton production will reach 4.3 million bales in 2026, providing a foundation for future exports.

Simultaneously, Brazil, a major cotton supplier in South America, also demonstrated strong performance. In November, Brazil's cotton exports surged to a historic high of 402,400 tons, a year-on-year increase of 34%. Despite the rapid export growth, the Brazilian industry remains dissatisfied with current price levels. The Brazilian Cotton Exporters Association (Anea) predicts that Brazil's cotton exports for the 2025/26 season are expected to reach approximately 3.2 million tons, marking a 10% increase compared to the previous season.

Anea President Davide Vals attributed the export growth primarily to the enhanced international competitiveness of Brazilian cotton, diversification of buyer markets, and a significant surge in import demand from India. He noted that the Indian government's extension of the cotton import tariff exemption until December 31 directly stimulated large-scale procurement. For the current sales season, Indian purchases already account for approximately 16% of Brazil's total cotton exports, serving as a key growth driver.

In summary, robust demand from the Asia-Pacific region, particularly India, is driving notable shifts in global cotton trade flows, with major suppliers Australia and Brazil significantly benefiting from this trend.