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

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Paolo Ocleppo
Sandvik Hyperion

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

Silke Brand-Kirsch
Schlegel und Partner

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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 ...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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