Home / Knowledge / News / Textiles / Firm demand continues to push up Brazilian cotton prices
Firm demand continues to push up Brazilian cotton prices
21
Mar '13
Firm demand continues to push up cotton prices in the Brazilian market. The CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo City, 8-day payment) has surpassed 2 reais per pound, which has not been observed since June 2011, in nominal and real terms (deflated by IGP-DI February 2013).

The CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, 8-day payment) moved up 8% in the partial of March (February 28 – March 15), averaging 2.0575 reais (1.0375 dollar) per pound on March 15.

Domestic prices are 25% higher than the export parity; however, firm demand from industry underpins prices. The industry prioritizes high-quality cotton, but its supply is low; therefore, players accept asking prices. Purchasers have low stocks and cannot halt production.

Besides the firm demand, the availability of the product for prompt-delivery is not significant in Brazil. In general, sellers offer only a few batches, waiting for production forecasts to close new trades. Part of sellers has already traded a part of the next crop in the domestic and international markets. In early March, cotton growers were focused on the soybean trading and agronomic practices for cotton crops.

The cotton planted area in the 2012/13 season may shrink 30.6%, totaling 967.7 thousand hectares – Conab (National Company for Food Supply) data. High production costs of cotton crops, low prices before the planting and high soybean and corn price levels are driving cotton growers to plant soybean and corn.

Conab indicates that the Brazilian production may total 1.4 million tons in the 2012/14 season, 25.4% less than the previous. Yield, in turn, may be 7.3% higher compared to the season before, totaling 1,466 kilos per hectare. The domestic consumption is estimated at 887 thousand tons and exports, at 642 thousand tons.

Data from Secex (Foreign Trade Secretariat) indicate that, in February 2013, Brazil shipped 47.4 thousand tons of cotton, 27% below that in January 2013 and 18.2% lower compared to February 2012.

Center for Advanced Studies on Applied Economics (CEPEA)

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Johan Berlin
InvestKonsult Sweden AB

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
January 2017

January 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