In March, cotton prices have weakened in Brazil and have registered decreases after highs for three months in a row. Trades remained sluggish in the Brazilian market – off-season period. Only purchasers interested in small batches were operating in late March. On balance, these agents continue to expect prices to drop and prefer to purchase only the necessary volume to not interrupt the production.
Industries were operating basically with the amount they have available in stock. These companies were waiting for expressive decreases in the upcoming months, when they might resume purchasing larger volumes. In general terms, harvesting activities in Brazil steps up in June.
Dealers remained flexible concerning prices charged. On the other hand, some producers were still expecting firm quotes for the upcoming weeks. Most cotton growers were focused on the development of the crops.
In the accumulated of March, 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) moved down 2.65%, closing at 3.8803 reais or 2.3790 dollars per pound on March 31.
CEPEA - Center for Advanced Studies on Applied Economics
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