Home / Knowledge / News / Textiles / Brazilian cotton exports may reduce sharply
Brazilian cotton exports may reduce sharply
19
Oct '12
Center for Advanced Studies on Applied Economics (CEPEA) reported that Conab’s (National Company for Food Supply) forecast that the cotton area in Brazil might shrink between 20.2% and 27.4% has led producers to refrain from closing new trades. 

According to the Company, the area may reduce to between 1.012 and 1.112 million hectares, which would result in a production between 1.49 and 1.63 million tons, 21.2% and 13.4% lower, respectively, compared to the crop before. Brazilian inventories at the end of the 2012/13 season might remain at the average observed in the last two years. Exports, in turn, might decrease significantly (Conab data) because of smaller domestic surplus.
 
Conab has indicated that the area decrease is attributed to price drops in the international and domestic markets, the unsatisfactory exchange rate, the lower profitability compared to other activities, such as the soybean, and the sharp increase of production costs.
 
Players surveyed by Cepea confirm the decrease for cotton planted area. The soybean planted area, in turn, may increase this season.
 
The lower supply for the next crop and demand decrease led prices to decrease in early October. The CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, 8-day payment) moved down 2.76% in the partial of October (September 28 – October 15), averaging 1.5352 real (0.7547 dollar) per pound on Oct. 15. 
 
In general, producers expect the market to react at this off-season beginning. Therefore, they prefer to postpone trades. Liquidity remained low at the beginning of October, and trades involved only small amounts. Some companies continued to wait for prices to keep the downward trend and were out of the market, pressing down values.

Center for Advanced Studies on Applied Economics (CEPEA)


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Eric Scholler
Groz-Beckert

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

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

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

September 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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

Active Poll

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

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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