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Brazil exports record cotton this season

Jun '19
Brazil exports record cotton this season
Brazil shipped 1.1 million tons of cotton between August 2018 and fourth week of May 2019, according to data from the secretariat of foreign trade (Secex). This figure exceeds the record 1.042 million tons of cotton exported in August-July 2011-12 season. During the last 12 months, the volume of cotton exported from Brazil totals 1.12 million tons.

In May 2019, the daily average of shipments was 3,900 tons, 15.5 per cent higher than that from April 2019. The total volume exported in May stood at 67,100 tons, according to Secex. In terms of revenue, the daily average was $6.7 million, 15.5 per cent higher than $5.8 million earned in the previous month. The average was $1.6 million a year ago.

Meanwhile, the trading pace was slow in May. “Purchasers were using the cotton previously acquired and/or stocked, and when they were interested in closing new deals, bidding prices were lower than asking prices. Besides, many of them reported difficulties to find cotton within the desired quality, since higher quality cotton has been allocated to exports,” Center for Advanced Studies on Applied Economics (CEPEA) said in its latest fortnightly report on the Brazilian cotton market.

Between April 30 and May 31, the CEPEA/ESALQ cotton Index, with payment in 8 days, dropped 2.6 per cent, closing at 2.8720 BRL per pound on May 31. The average price in May, at 2.8821 BRL per pound, was 4 per cent lower compared to April 2019. (RKS)

Fibre2Fashion News Desk – India

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June 2019

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