Home / Knowledge / News / Textiles / Dollar increases favor sales of cotton in Brazil
Dollar increases favor sales of cotton in Brazil
04
Apr '12
Center for Advanced Studies on Applied Economics (CEPEA) reported that liquidity in the Brazilian cotton market moved up in late March. Most agents, who were refrained from trading due to ups and downs of quotes, resumed trading because of the valuation of dollar against the real, increasing the export parity, which neared the Index. As for the import parity, data from Conab (National Company for Food Supply) indicates that, for the time being, it is more advantageous to purchase cotton in the domestic market.

In this scenario, in late March, Brazilian cotton growers were even firmer regarding values. Moreover, many producers remained focused on crops. Only some sellers, who were in need to make cash flow, reduced prices – even so, only for small volumes. As for the demand, companies with immediate needs accepted asking prices, but negotiated more days for the term payment.

The CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) downed 0.32% in the accumulated of the month (Feb. 29 – March 30), and closed at 1.6237 real or 0.8887 dollar per pound on March 30.

In late March, crops were still in bad condition in the northern region of Minas Gerais because of the dry weather. Players surveyed by Cepea say that they have already lost many crops. In Triângulo Mineiro, rains may benefit crops. In Bahia, the dry weather continued and producers estimate losses of around 30%.

Supply and demand data, released by the USDA on March 9, indicated that the world production may be higher than the demand for the third year in a row. This scenario would increase world stocks to the highest level of the last 11 years. Consequently, prices would be pressed down; but, on the other hand, demand could heat up.

Center for Advanced Studies on Applied Economics (CEPEA) is a research center of the University of São Paulo located at ESALQ in Piracicaba, State of São Paulo.

Center for Advanced Studies on Applied Economics (CEPEA)

Must ReadView All

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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