Home / Knowledge / News / Textiles / Brazil cotton prices dip below govt floor price
Brazil cotton prices dip below govt floor price
Aug '14
Due to the 11% decrease of cotton prices in July, now, all regions in Brazil register price levels below the government’s price floor, which would justify the intervention of the Brazilian government for trading and keeping producers’ revenue. However, there are still no perspectives about this.

The CEPEA/ESALQ Index for cotton type 41-4 closed at 1.6942 real (0.7463 dollar) per pound on July 31. Domestic price drops are attributed to smallest values of the index for Cotlook A and contracts at ICE Futures.

Considering the consumption, Icac’s (International Cotton Advisory Committee) report released on August 1 indicated that, due to similar prices between cotton and polyester, the global cotton consumption might increase 5%, to 24.5 million tons in the 2014/15 crop.

In regional terms, Icac estimates that the Asian consumption might increase significantly in 2014/15, led by China, upping 5%, at 7.9 million tons. In India, an increase of 6% is expected, at 5.4 million tons, while for the rest of the continent, the consumption is forecasted to move up 8%.

For the 2014/15 crop, weather conditions are favoring the crops’ development in major producing countries, which might keep the availability high.

The index for Cotlook A, between July 28 and August 1, dropped 4.8% compared to the next week (July 21-25). In the same period, the dollar average rose 1.15%. The export parity calculated by Cepea FAS (Free Alongside Ship) Paranaguá port averaged 1.4939 real per pound, downing 4.4% compared to the previous.

In Brazil, trades involving small batches are still prevalent. Roughly 60% of the 2013/14 Brazilian crop is already traded, and producers are focused on accomplishing contracts. This fact also limits the need of immediate purchases from the industry.


Must ReadView All

Apparel/Garments | On 21st Oct 2016

China’s garment retail sales grow 7.2% in Jan-Sept ’16

Retail sales of garments, footwear, hats and knitwear of Chinese...

Mike Preston, executive director of the Arkansas Economic Development Commission (AEDC), signing MoU with Tang from Suzhou Tianyuan Garments company. Courtesy: Government of Arkansas

Apparel/Garments | On 21st Oct 2016

Suzhou Tianyuan to open $20 mn garment factory in US

Suzhou Tianyuan Garments company, a Chinese manufacturer of casual...

Textiles | On 21st Oct 2016

Pakistan’s textile exports fall 5.96% y-o-y in Q1 FY17

The value of textile and garment exports made by Pakistan decreased...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Steve Cole
Xerium Technologies

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

Kerem Durdag
Biovation II LLC

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

Giorgio Mantovani
Corman S.p.A

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

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Karan Arora
Karan Arora

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search