Home / Knowledge / News / Textiles / Brazilian cotton quotes lower than govt floor price
Brazilian cotton quotes lower than govt floor price
08
Jan '15
According to CEPEA, cotton quotes have dropped significantly in the Brazilian market in 2014, especially after February and are lower than the government floor price since mid July.

The CEPEA/ESALQ Index for cotton type 41-4 has dropped 27.62 per cent till December 28 as against that observed in 2013, when the Index rose 33.84 per cent.

This is a result of significant increase of 32 per cent in Brazilian cotton production in 2013/14 compared to the season before, along with a quality decrease in this crop, says Conab.

At the beginning of the year, the low domestic demand and differences between bidding and asking prices, limited cotton trades.

Despite the fact that some cotton growers refrained from making new deals, traders were more flexible regarding sales prices, mainly to keep cash flows going.

Cotton producers were however more focused on agricultural practices, concerned about weather conditions and possible impacts on the crops’ yield.

Trading companies were more active in the domestic market due to consecutive decreases of international prices in July.

CEPEA partners have observed that temperature oscillations and rains in July were the defining aspects for the delay in harvesting with rains and more so cotton quality.

Cotton dealers were operating more in the market, looking for batches to accomplish contracts. Industries that need to purchase bought small volumes, expecting new price drops.

In most part of September, players refrained from new trades, expecting Pepro (Equalization Premium Paid to the Producer and/or Cooperative) auctions.

Due to cotton prices slipping below the government price floor of BRL 1.6602 pound since July 2014, producers continued expecting quotes to be stable or to increase.

Even with the auction, quotes remained weak and trading companies focused on the dollar valuation against the real and resumed trading cotton mainly in the international market.

In the last quarter of the year, quotes oscillated a little and the Index remained at around 1.65 BRL per pound.

Despite the interest in purchasing from industries, frequent complaints about the low quality of the product brought difficulties in signing new trades.

According to Secex, in 2014, shipments were 21 per cent higher than those seen in 2013. (AR)

Fibre2fashion News Desk - India


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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