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

Europe fights against microplastic release from textiles

Textiles | On 18th Jan 2018

Europe fights against microplastic release from textiles

The European Commission, the institution of the European Union, has...

Egypt starts building biggest textile city in Al-Sadat

Textiles | On 18th Jan 2018

Egypt starts building biggest textile city in Al-Sadat

Egypt has started construction of the biggest city for textiles and...

Vietnam targets $20 bn from export of footwear, bags

Apparel/Garments | On 18th Jan 2018

Vietnam targets $20 bn from export of footwear, bags

Vietnam targets to earn around $20 billion from the export of...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Silke Brand-Kirsch
Schlegel und Partner

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Robert Brunner
Devereux

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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