Home / Knowledge / News / Textiles / Brazilian cotton exports to zoom 42.4%
Brazilian cotton exports to zoom 42.4%
05
Jan '12
In early 2011, sellers were optimistic regarding cotton prices and, in March, quotes hit record levels in both domestic and international markets. This led to an increase in the planted area and global supply moved up. The demand, however, has not followed the same pace. Cotton was traded at record values, so, purchasers were looking for cheaper alternatives.

Consequently, the demand for artificial fibers has grown, reducing the demand for cotton yarn. Cotton quotes shrank, but purchases of natural fibers, such as cotton, did not increase quickly as expected.

In the first three months of 2011, values in both the domestic and international markets upped, hitting a record in March, despite the low liquidity. In that time, agents wondered what limit quotes would hit.

Prices moved up sharply until mid-March due to an increase in consumption, to a reduction in the planted area in important producing countries in the 2009/10 season and to the shrinking of world stocks.

In the second fortnight of March, quotes were high and led purchasers to refrain from trading, which pushed down prices in the domestic market.

In April, values dropped by a whopping 24.35%, the highest negative variation in a month of all Center for Advanced Studies on Applied Economics - CEPEA data, started in July 1996.

Expectations of a higher world supply pushed down cotton prices until mid-2011, when weather problems in many regions in the world, including Brazil, caused uncertainties about the world production. Meanwhile, the demand became steadier.

At the beginning of the second semester of 2011, the trend of cotton quotes changed three times in a little more than a month. In the last three months of the year, the low demand for cotton prevailed in Brazil and in the world, pressing quotes down.

In the 2010/11 season, the planted area in Brazil upped 67.6%, to 1.4 million hectares, according to National Company for Food Supply. The yield moved up 2%, to 1,400 kilos per hectare. Therefore, Brazilian cotton production increased 64%, amounting 1.96 million tons in the 2010/11 crop.

Brazilian shipments may amount to 730,000 tons, representing an increase of 42.4% compared to exports in 2010.

Center for Advanced Studies on Applied Economics


Must ReadView All

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X