Mozambique and Brazil implement agricultural shifts in cotton and commodities

The Mozambican government has approved a new regulatory framework for the cotton sector to reverse a 90% decline in production since 2011. The initiative aims to increase annual output from 20,000 to 60,000 tonnes, potentially generating US$65 million in export revenues and recovering approximately 50% of lost jobs. The regulation covers the entire value chain, including production, commercialization, and export, to stimulate private investment.

In Brazil, the agricultural sector faces mixed economic signals. Brazilian cotton exports reached a record 3.37 million tonnes in the 2025/26 commercial year, supported by rising international prices. However, producers are struggling with rising costs; despite a 7.4% drop in fertilizer import volumes, total expenditure rose by 7.3% due to high international prices.

Additionally, sugar and ethanol prices in Brazil have trended upward due to rainfall forecasts and global supply concerns. Despite a 42% surge in São Martinho shares in August, Bank of America has maintained an ‘underperform’ rating on the company, suggesting that the global sugar deficit is already priced into the market.