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Slightly high supply weakens cotton prices in Brazil
19
Nov '15
In early November, the pace of cotton trade was slow and prices were decreasing, according to the report for the first fortnight of November released by Cepea, a research centre of the University of São Paulo.
 
In the first fortnight until November 16, 2015, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, decreased 1.28 per cent.
 
Meanwhile, growers were more flexible regarding prices, especially for batches with some quality problem. For cotton with quality above pattern (41-4), sellers were firm, asking above-average prices. 
 
According to data from the National Company for Food Supply (Conab), Brazilian cotton production from the 2015-16 crop may be around 1.458 to 1.499 million tons, pushed down by the area, which may reduce 2.95-5.5 per cent to around 936-965.3 thousand ha.
 
In Mato Grosso state, main Brazilian producer, planting of first crop is expected to begin in December and harvesting may reach from 896.3 to 914.1 thousand tons, down 0.8-2.8 per cent compared to the previous season. (RKS)
 

Fibre2Fashion News Desk – India


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