EN 
PT_BR 
The average negotiated price of cotton from the 2026/27 crop in Mato Grosso already exceeds the levels needed to cover the operational costs of production, but still remains below the break-even point necessary to remunerate the total cost of the activity. This is shown by the most recent data from the Mato Grosso Institute of Agricultural Economics (Imea).
Considering the average productivity of the last three harvests, of 126.86 arrobas of cotton lint per hectare, the institute calculates that cotton needs to be traded at at least R$ 120.06 per arroba to cover the Effective Operating Cost (COE), R$ 128.20/@ to reach the Total Operating Cost (COT) and R$ 147.47/@ to remunerate the Total Cost (CT).
Until August, however, the weighted average price of negotiations for the 2026/27 crop was R$ 129.67 per arroba.
Therefore, the average price sold exceeds the level needed to cover the COE by R$ 9.61/@ and the COT breakeven point by R$ 1.47/@, but is still R$ 17.80/@ below the value needed to cover the total cost of production.
The data shows that, despite the price improvements observed in recent months, the profit margin for cotton farmers in Mato Grosso remains under pressure for the upcoming season.
In August, the cost of the 2026/27 crop was estimated by Imea at R$ 10,617.82 per hectare, a slight decrease of 0.11% compared to the previous month.
Meanwhile, the COE advanced 0.13% in the period, to R$ 15,250.61 per hectare, mainly pressured by lease expenses, which rose 4.72% in the month.
The COT was projected at R$ 16,264.37 per hectare, a monthly increase of 0.25%, while the total cost reached R$ 18,709.02 per hectare, an increase of 0.21%.
The figures reinforce that the recovery in prices has not yet eliminated the pressure on the profitability of the 2026/27 crop. The evolution of prices, input costs, and productivity will be decisive in determining the producer's margins throughout the next season.
