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Weak demand pulls down Brazilian cotton prices
08 Mar '16
2 min read
According to a CEPEA press release, Brazilian cotton prices dropped during February, while the downtrend was more intense in the last week of the month.
“Prices were pushed down due to higher supply and weak demand and as trading companies were quoting prices lower than those asked by cotton farmers,” CEPEA explained.
“Even though, some producers remained firm in asking prices, others were waiting for prices to increase,” the Brazilian agency said.
Cotton brokers and merchant were active, but the gap between asking and quoted prices hampered new trades, especially for the second fortnight of the month.
“This in turn led to textile mills purchasing in small batches and the in the last week of February, the CEPEA/ESALQ Index dropped 1.71 per cent,” CEPEA observed.
In February, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, decreased 3.64 per cent closing at 2.5247 BRL or $0.631 per pound on February 29.
The monthly average, at 2.5775 BRL or $0.649 per pound, was 1.66 per cent lower than in January 2016, but still 37.2 per cent higher than in February 2015. (AR)
“Prices were pushed down due to higher supply and weak demand and as trading companies were quoting prices lower than those asked by cotton farmers,” CEPEA explained.
“Even though, some producers remained firm in asking prices, others were waiting for prices to increase,” the Brazilian agency said.
Cotton brokers and merchant were active, but the gap between asking and quoted prices hampered new trades, especially for the second fortnight of the month.
“This in turn led to textile mills purchasing in small batches and the in the last week of February, the CEPEA/ESALQ Index dropped 1.71 per cent,” CEPEA observed.
In February, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, decreased 3.64 per cent closing at 2.5247 BRL or $0.631 per pound on February 29.
The monthly average, at 2.5775 BRL or $0.649 per pound, was 1.66 per cent lower than in January 2016, but still 37.2 per cent higher than in February 2015. (AR)
Fibre2Fashion News Desk – India
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