Home / Knowledge / News / Textiles / Firm demand strengthens Brazilian cotton prices
Firm demand strengthens Brazilian cotton prices
19
Oct '13
Some cotton growers were firmer in regard of prices in the first fortnight of October. Moreover, the demand of some processing companies was slightly higher. This scenario has strengthened cotton quotes. Between September 30 and October 15, the CEPEA/ESALQ Index for cotton type 41-4 upped 1.17% and closed at 2.1605 real (0.9892 dollar) per pound on Oct. 15.

Differences between asking and bidding prices were high in early October. The industry was purchasing only small batches to replenish stocks and was unwilling to pay higher quotes. Most part of these companies has been requiring the high-quality product.

Many cotton growers, in turn, did not need to make cash flow in early October. Therefore, producers took advantage of the moment to trade the product in the Brazilian spot market at higher prices.

Conab (National Company for Food Supply) data released at the beginning of October indicated that the planted area in Brazil in the 2013/14 crop may increase between 16.8% and 22.5%, and it might total from 1.043 million to 1.094 million hectares.

If weather conditions are favorable, the cotton production may total between 1.59 and 1.67 million tons, for an increase of 329.6 thousand tons comparing to the 2012/13 crop, according to Conab. The yield is forecasted at 1,527 kilos per hectare (+4.7%).

Conab indicates that planting activities may start in the second fortnight of October in São Paulo, Paraná and southern region of Mato Grosso do Sul. In other regions, the planting may start between November and December and it might extend until January in Mato Grosso, Goiás and in Barreiras (Bahia State).

As for exports, Conab says that they may amount 570 thousand tons in the 2013/14 crop, 7.5% more than in the previous. The increase is attributed to expectations that seasons in the US and China (world’s major producers) might be lower than that registered before. Moreover, international price rises of cotton may encourage Brazilian producers to tip the scale towards exports.

Therefore, the Brazilian production may meet the domestic demand and part of the international demand. The total supply (initial stocks + production + imports) may total 2.08 million tons, while the total demand (domestic consumption + exports) is forecasted at 1.5 million tons – Conab data. As a result, ending stocks estimated would total 590 thousand tons, the enough to satisfy the demand from the Brazilian industry in the off-season period, according to Conab.

Center for Advanced Studies on Applied Economics (CEPEA)


Must ReadView All

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Apparel/Garments | On 18th Nov 2017

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Sri Lanka’s apparel exports from January to September 2017 has...

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Apparel/Garments | On 18th Nov 2017

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Bangladesh Prime Minister Sheikh Hasina has said two more leather...

ASEAN, Hong Kong sign free trade agreement

Textiles | On 18th Nov 2017

ASEAN, Hong Kong sign free trade agreement

The Association of Southeast Asian Nations (ASEAN) and Hong Kong...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Suresh Patel
Sidwin Fabric

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Bani Batra

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

Judy Frater
Somaiya Kala Vidya

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

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

November 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
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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