Home / Knowledge / News / Textiles / Demand for Brazilian cotton increases
Demand for Brazilian cotton increases
06
Aug '12
Center for Advanced Studies on Applied Economics (CEPEA) reported that cotton trades continued moving at a slow pace in late July; however, the demand started to pick up as agents rebound their inventories. As for supply, producers were prioritizing the accomplishment of contracts, mainly to export and, in the meantime, the product available in the Brazilian market was basically from the 2010/11 crop.

At the end of the month, producers were focused on harvesting activities, which were slower than expected. Cotton ginning remained at the same pace, and, therefore, sellers were only accomplishing contracts. Trades involving the 2011/12 crop at BBM (Brazilian Commodity Exchange) indicate that roughly 45% of the production has already been sold. Of this volume, only 22% accounts for domestic purchasers (circa 20% of domestic demand).

These figures indicate that sales to export this year are more significant considering the beginning of harvest. Data indicate that companies operating in the Brazilian market still need to purchase a higher share of the product to satisfy their demands. These companies expect more significant price drops, which will be driven by the pace of exports.

Until late July, producers were selling only batches of the 2010/11 season, accepting purchasers’ demand. Even so, it was difficult to sell those batches in that period, because of the quality of cotton that, in most cases, does not meet purchasers’ requirements.

At the end of the month, most processors were willing to buy cotton for immediate needs, since companies which have closed anticipated contracts faced delays and were low on inventories. Other purchasers, in turn, expecting price drops when the harvesting advances in Mato Grosso, continued out of the market.

In July, the CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) upped 2.34% and closed at 1.5830 real or 0.7733 dollar per pound on July 31.


 

Center for Advanced Studies on Applied Economics (CEPEA)

Must ReadView All

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Information Technology | On 25th Apr 2017

Self-repairing fabrics to be the future of fashion

It is the era of smart. Intelligent materials like self-repairing...

Textiles | On 25th Apr 2017

Indonesia revitalising textile sector

With exports of textile and textile products rising in Indonesia, the ...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Tony Ward
Tony Ward

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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
April 2017

April 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