Home / Knowledge / News / Textiles / Brazilian cotton output may reduce in 2014/15: CEPEA
Brazilian cotton output may reduce in 2014/15: CEPEA
19
Jan '15
Brazilian cotton output might again reduce in the 2014/15 crop, but would still be close to the average registered over the last 11 seasons, says the latest fortnightly report of CEPEA.

“In worldwide terms, a supply decrease is expected for the third time in a row, but despite that, ending stocks might continue to increase,” it adds.

It informs “This scenario may limit the increase of quotes, which might operate lower than the nominal average over the last 11 years.”

In Brazil, prices will depend on the export parity in international price, export costs and exchange rate ratio and mainly on the volume effectively shipped, which will determine the domestic surplus.

Producers who are able to access the global market might obtain remunerative prices, especially if the exchange rate is higher than that observed in December.

Again, cotton might lose room in the Brazilian 2014/15 season, which tends to be a certain decision when seen from a producers’ point of view.

Since mid-2014, regional quotes are below the official price floor, and data indicates a tight situation, when revenue and costs of the new season are compared.

According to CEPEA, it expects negative profitability of 7.5 per cent, when comparing production costs in November 2014, with value of export contracts to deliver in September 2015.

It however indicates that when comparing the same parameters like cost of inputs in November 2014 to export value in September 2014, the profitability was 6 per cent positive.

“In spite of possible smaller area and production, considering prices, exports will be a major market definer in 2015, which can change the benefit/cost ratio,” the agency observes.

On one hand, exports favour the reduction of domestic surplus, and on the other hand, price levels of export contracts might guarantee satisfactory revenue, depending also on the exchange rate.

CONAB data indicates that the planted area in Brazil might reduce 10.4 per cent on average in 2014/15, to roughly 1 million hectares.

The average yield considered up until now is 1,532 kilos per hectare, 0.9 per cent smaller, resulting in a production of 1.54 million tons, against 1.73 million tons in the season before.

This supply, along with initial stocks of 519,600 tons and imports of 18,000 tons will push up to 2.08 million tons the domestic availability for 2015, according to CONAB data.

“From this amount, domestic consumption might absorb 850,000 tons,” it noted.

Therefore, the surplus would be 1.23 million tons. As a result, it will be necessary to export major volumes, in order for domestic quotes to not drop significantly.

From the last five crop-years, this one will be the fourth in which domestic surplus might surpass 1.2 million tons. In the previous three, exports totaled more than 700,000 tons. (AR)

Fibre2fashion News Desk - India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Courtesy: ZDHC

Textiles | On 23rd Jan 2017

Oeko-Tex joins ZDHC programme for sustainability

Oeko-Tex, an independent textile testing institute working for the...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Eric Scholler
Groz-Beckert

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mohammad Hassan
Biax Fiberfilm

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Ritu Kumar
Label Ritu Kumar

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

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search