Home / Knowledge / News / Textiles / Brazilian cotton prices surge 23% in new season
Brazilian cotton prices surge 23% in new season
08
Mar '13
Cotton prices have increased significantly over the last eight months, a period when the harvesting is intensified and Brazilian cotton exports move up. The 2011/12 season (harvested in 2012) was the second highest in history, and purchasers expected significant price drops in Brazil, which was observed in the first semester of 2012. However, the trend changed and domestic and export demands underpinned prices.

In the second semester of 2012, significant volumes exported recovered prices reducing domestic inventories. From July 2012 to January 2013, the average price to export was 0.9230 dollar per pound, according to Secex (Foreign Trade Secretariat), higher than in the Brazilian market, of 0.8008 dollar per pound (according to the CEPEA/ESALQ Index for cotton type 41-4, delivered in São Paulo city).

The need to keep exports high if the Brazilian production surpasses more than 1 million tons will lead producers to close trades in the international market. This is likely to happen even if daily figures based on the Cotlook A show lower export parity in comparison to the domestic prices, as the current scenario.

Moreover, producers had good revenue in 2012, with exports and with good price levels for soybean and corn, and do not have immediate need to make cash flow.

On the other hand, the industry purchased only to meet immediate needs in 2012. In the first months, purchasers were expecting the harvesting to push down prices, however, quotes started to increase, causing fears regarding trades involving high volumes.

As a result, monthly average prices in the Brazilian market registered, in February, the seventh increase in eight months (since July, period of stepping up of the harvesting) and the fourth in a row. Considering daily data, between late June 2012 and late February 2013, domestic prices (CEPEA/ESALQ Index) upped 23%.

At the end of February, liquidity reduced, but trades continued to be closed at firm prices. Most trades involved only volumes for immediate consumption, and some companies were interested in anticipated contracts based on the CEPEA/ESALQ Index due date for the payment, expecting prices to decrease in the upcoming months.

Center for Advanced Studies on Applied Economics (CEPEA)


Must ReadView All

Textiles | On 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Karan Arora
Karan Arora

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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:
June 2017

June 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