Cotton prices in Brazil continued firm despite prices dropping sharply in the international market in March. The first contract at the New York Stock Exchange (ICE Futures) decreased to the lowest level since mid-June 2009, in nominal terms, and the Cotlook A Index dropped to $0.6220 per pound late in the month, the lowest since late August 2009.
Cotton prices in Brazil continued firm despite prices dropping sharply in the international market in March. The first contract at the New York Stock Exchange (ICE Futures) decreased to the lowest level since mid-June 2009, in nominal terms, and the Cotlook A Index dropped to $0.6220 per pound late in the month, the lowest since late August 2009.#
Brazilian cotton prices stayed firm, underpinned by the strong dollar – the American currency was higher than 5.00 BRL along the second fortnight of the month, closing at 5.196 BRL on March 31, Center for Advanced Studies on Applied Economics (Cepea) said in its fortnightly analysis of the Brazilian cotton market.
Cotton prices in Brazil continued firm despite prices dropping sharply in the international market in March. The first contract at the New York Stock Exchange (ICE Futures) decreased to the lowest level since mid-June 2009, in nominal terms, and the Cotlook A Index dropped to $0.6220 per pound late in the month, the lowest since late August 2009.#
Between February 28 and March 30, the exports parity calculated by Cepea, FAS (Free Alongside Ship), at Paranaguá port (PR), decreased by 15.53 per cent, due to the 15.48 per cent drop in the Cotlook A Index, while the US dollar rose a staggering 15.2 per cent against Real. The monthly parity average was 2.8968 BRL per pound (until March 30), a slight 0.03 per cent higher than that in the previous month, but 3.9 per cent higher than that from March 2019 (2.7886 BRL per pound).
Cotton prices in Brazil continued firm despite prices dropping sharply in the international market in March. The first contract at the New York Stock Exchange (ICE Futures) decreased to the lowest level since mid-June 2009, in nominal terms, and the Cotlook A Index dropped to $0.6220 per pound late in the month, the lowest since late August 2009.#
In that same period, the Cotlook A Index dropped 8.65 per cent compared to that in February 2020 and 21.2 per cent compared to that in March 2019. In the monthly comparison, the US dollar increased 12.35 per cent against real, and in the annual comparison, 27 per cent.
Cotton prices in Brazil continued firm despite prices dropping sharply in the international market in March. The first contract at the New York Stock Exchange (ICE Futures) decreased to the lowest level since mid-June 2009, in nominal terms, and the Cotlook A Index dropped to $0.6220 per pound late in the month, the lowest since late August 2009.#
"The Futures traded at ICE Futures were pressed down by the coronavirus outbreak, oil devaluations and lower demand. Besides, demand is weaker in the international market – lower activities at destination ports influenced this context. According to Cepea collaborators, some foreigner purchasers asked to postpone deliveries," Cepea said in its analysis.
Cotton prices in Brazil continued firm despite prices dropping sharply in the international market in March. The first contract at the New York Stock Exchange (ICE Futures) decreased to the lowest level since mid-June 2009, in nominal terms, and the Cotlook A Index dropped to $0.6220 per pound late in the month, the lowest since late August 2009.#
Between February 28 and March 31, the CEPEA/ESALQ cotton Index, with payment in 8 days, decreased by 2.9 per cent, closing at 2.4814 BRL per pound on March 31. The monthly average in March was 2.9183 BRL/pound, 2.3 per cent higher than that in February 2020.
Cotton prices in Brazil continued firm despite prices dropping sharply in the international market in March. The first contract at the New York Stock Exchange (ICE Futures) decreased to the lowest level since mid-June 2009, in nominal terms, and the Cotlook A Index dropped to $0.6220 per pound late in the month, the lowest since late August 2009.#
Fibre2Fashion News Desk (RKS)