Home / Knowledge / News / Textiles / Liquidity hike strengthens Brazilian cotton prices
Liquidity hike strengthens Brazilian cotton prices
21
Aug '14
Since the last few days, due to a rise in liquidity, cotton trade in the Brazilian market has started moving at a slightly faster pace, although only small lots are being traded.

This scenario is strengthening cotton prices in the Brazilian market. Most cotton growers are holding on to their stocks, due to which buyers are offering higher quotes for high-quality cotton, but supply of high-quality cotton is low.

In general, the price gap between asking and bidding prices continues to limit new trades.

Due to sharp price drops in previous months, cotton producers continue to focus on fulfilling contracts and harvesting cotton.

The textile industry, on the other hand, is not willing to pay higher prices for cotton and if they do pay, they are demanding longer credit periods.

Cotton trading companies are keeping a keen eye on fluctuations in the international market and as a result, are more careful regarding quotes offered in Brazil.

The CEPEA/ESALQ Index for cotton type 41-4 closed at 1.6891 real (0.7480 dollar) per pound on August 18, up 1.76% from August 11.

Cotton traders surveyed by CEPEA say that the cotton quality, in some cases, does not meet the required standards.

Despite slight cotton price increase in mid-August, regional quotes are below the government’s floor price. So, cotton producers continue to expect a possible intervention from the government, through auctions, in an attempt to stabilise prices.

Between August 11 and 15, Cotlook A Index rose 0.65% compared to its previous week ending August 8. In the same period, the dollar dropped 0.25%. The export parity calculated by Cepea FAS (Free Alongside Ship) Paranaguá port averaged 1.4222 real per pound.

The import parity released by Conab (National Company for Food Supply), based on the index for Cotlook A, CIF São Paulo averaged 1.9804 real per pound in the same period, moving up 0.49%.

Fibre2fashion News Desk - India


Must ReadView All

US commerce department finds dumping of low melt PSF

Textiles | On 20th Jun 2018

US commerce department finds dumping of low melt PSF

The US department of commerce (USDC) has announced affirmative final...

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Top executives
Textile industry, India

The event should be organised every year

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Harmeet Singh

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silke Brand-Kirsch
Schlegel und Partner

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Tony Ward
Tony Ward

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

Vaanee Bhatia
Gritstones Clothing

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

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search