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: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Johan Berlin
InvestKonsult Sweden AB

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

Kai Poehler
Voith Paper GmbH & Co. KG

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search