Home / Knowledge / News / Textiles / Low availability of high-quality cotton halts downtrend
Low availability of high-quality cotton halts downtrend
Aug '13
The low availability of high-quality cotton and price rises in the international market halted the downward trend in Brazil in early August. Moreover, dollar quotes at high levels keep import and export parities stable, leading sellers to be even firmer regarding prices.

The CEPEA/ESALQ Index for cotton type 41-4 upped 7.21% in the first fortnight of August and closed at 2.2395 real (0.9558 dollar) per pound on Aug. 15. 

Cotton growers still prioritize the harvesting, ginning and accomplishment of contracts of cotton, mainly those for export. These agents were still expecting cotton ginning advances and the identification of types obtained to meet anticipated trades and, then, offer the product in the spot market.

Some processors were concerned with the availability of the product in this second semester. Therefore, purchasers try to close anticipated contracts, aiming to build stocks for at least three months and to reduce seasonality and price risk. 

Data from Conab (National Company for Food Supply) released in early August indicated that the Brazilian cotton supply may reduce 32.7% compared to the previous. The national production in 2013 is almost the same as that the Central-Western region obtained in 2012; in other words, the supply difference among years was equivalent to the total produced in the Northeastern, Southeastern and Northern regions in Brazil. Conab estimates a harvested area of 894.1 thousand hectares (-35.8%) and a yield of 1,426 kilos per hectare (+4.9%).

Still according to Conab, Brazil started 2013 with 500 thousand tons, which, added to the 1.275 million tons supply and forecasted imports of 35 thousand tons, the domestic availability would be 1.8 million tons. The domestic consumption is projected at 887 thousand tons and exports, at 530 thousand tons, which would keep ending stocks in December/13 at 394 thousand tons. These stocks would be relatively low, which would not allow major price changes in Brazil.

Center for Advanced Studies on Applied Economics (CEPEA)

Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mohammad Hassan
Biax Fiberfilm

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

Suresh Patel
Sidwin Fabric

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


July 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

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

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

Yes No

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

Yes No

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

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