Home / Knowledge / News / Textiles / CEPEA/ESALQ cotton index soars in January
CEPEA/ESALQ cotton index soars in January
03
Feb '11
On Jan. 24, cotton prices hit a new record in the Brazilian market and at New York Board of Trade (ICE Futures). The Center for Advanced Studies on Applied Economics - CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) reached 3.4862 reais or 2.0850 dollars per pound, the highest real value (deflated by IGP-DI December/10) since Cepea data began, in June 1996. The previous record, also considering deflated values, was registered in mid-January 2004.

In late January, cotton prices in both Brazilian (CEPEA/ESALQ Index) and international markets (ICE Futures and Cotlook A) remained hitting new records in real terms (IGP-DI December/10).

The 2009/10 season has ended with the lowest stock/consumption ratio over the last 15 years, which reflects a slight reduction of the world supply and a fast increase of the demand in that period. The harvest of the next Brazilian crop will start in June and might pour into the market 54% more of the product compared to the previous season, according to data from Conab (National Company for Food Supply). In world terms, the increase is forecast to reach 13.7%, according to USDA.

In the accumulated of January, the CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) edged up a whopping 23%, closing at 3.5830 reais or 2.1403 dollars per pound on Jan. 31.

Liquidity was not expressive in that period, however, the firm position of producers regarding the low availability of cotton for prompt-delivery underpins quotes. Some cotton growers are focused on the second crop of cotton, which is delayed due to the excess of rains that jeopardizes the soy harvest.

In this scenario, dealers, operating as sellers, have been willing to trade and are taking advantage of current high prices to sell the stocked product. Only a few sellers are flexible in terms of values. Industries, in turn, purchase the product only for immediate needs. In many cases, trades are limited by the difficulties to find batches of higher quality cotton.

CEPEA - Center for Advanced Studies on Applied Economics

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Eamonn Tighe
Nature Works LLC

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

Steve Cole
Xerium Technologies

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Wendell Rodricks
Wendell Rodricks

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
February 2017

February 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