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Brazil's cotton business slows down in March 2016
07
Apr '16
The monthly average of March 2016 of the CEPEA or ESALQ Index for cotton type 41-4 was 4.96 per cent lower at 2.4497 BRL ($0.662) per pound than the average of February, 2016. For exports contracts, according to Cepea collaborators, weak international demand and the drop of export parity were slowing down business.

Cotton prices dropped in the Brazilian market in March. Oscillations in the international cotton prices and dollar drove some sellers out of the market.

Aware of that posture, active cotton growers ended up asking slightly higher prices, even for low-quality batches. Industries, however, were not willing to pay those prices and acquired only small batches for prompt deliveries.

Cotton brokers and merchants purchased and sold cotton with trades already closed. Some bought cotton to accomplish contracts that had been previously closed, while others needed to meet demands from processors. (MCJ)

Cepea-Brazil


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