Home / Knowledge / News / Textiles / Brazilian cotton prices continue downtrend in July

Brazilian cotton prices continue downtrend in July

06
Aug '19
Pic: Shutterstock
Pic: Shutterstock
Prices continued to drop in Brazilian cotton market in July 2019. The CEPEA/ESALQ cotton Index, with payment in 8 days, has been dropping since late May. Between June 28 and July 31, the Index decreased 7.7 per cent, closing at 2.5065 BRL per pound on July 31. The average price in July, at 2.6244 BRL per pound, is 6.1 per cent lower than that in June 2019.
 
The fall in cotton prices is despite the low supply, which kept the trading pace slow in the domestic market. The low supply is due to a delay in the harvesting of the 2018-19 crop—and consequently in cotton processing—because of rains in mid-May and colder weather in some areas of Mato Grosso and Bahia, the two leading cotton growing states, Center for Advanced Studies on Applied Economics (CEPEA) said in its latest fortnightly report on the Brazilian cotton market.
 
Trades for future delivery were also slow in July. Many of the deals for exports were based on the contracts at the New York Stock Exchange (ICE Futures). In the Brazilian market, however, deals were closed at fixed prices (Real or US dollar)—and / or to be fixed (Index or ICE Futures)—involving the cotton from both the 2018-19 and the 2019-20 seasons, the report said.
 
Meanwhile, cotton harvesting in Mato Grosso has reached 25.36 per cent of the total estimated area of 1.072 million hectares, according to data from Instituto Matogrossense de Economia Agropecuária (IMEA or the Mato Grosso Institute of Agricultural Economics).
 
According to data from the BBM tabulated by CEPEA, 74.7 per cent of the 2017-18 Brazilian crop, estimated at 2.005 million tons, may have been marketed until July 30. Of this total, 58.2 per cent was allocated to the domestic market, 31.5 per cent to the international market, and 10.3 per cent to flex contracts (exports with an option to sell in the Brazilian market).
 
For the next season, i.e. 2018-19, data indicate that at least 36 per cent of the output (estimated by Conab at 2.665 million tons) was traded in that same period, with 46.3 per cent allocated to the domestic market, 35.6 per cent to exports, and 18.1 per cent to flex contracts. (RKS)
 

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 14th Aug 2020

Cambodia prepares to face upshot of partial EBA withdrawal

As the preferential treatment Cambodia enjoyed under the European...

Pic: USDA/FAS

Textiles | On 14th Aug 2020

India & Brazil push world cotton stocks to high level

World cotton stocks remain high as the Minimum Support Price (MSP) in ...

Pic: Shutterstock

Apparel/Garments | On 14th Aug 2020

Apparel production in Vietnam fell by 4.6% YoY in Jan-Jul

In the first seven months of this year, textile production in Vietnam ...

Interviews View All

Marazban F Velati, Sutlej Textiles & Industries limited

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Textile industry, Head honchos

Textile industry
Head honchos

It is a well-calibrated budget

Boban Charly,

Boban Charly

Bierrebi designs and manufactures automatic machines that cut fabric into...

Alon Moshe,

Alon Moshe

Israel-based Twine Solutions is a technology start-up that has developed a ...

Marcello Galvanin,

Marcello Galvanin

Galvanin has more than 50 years of experience in the production of textile ...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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

Leave your Comments


August 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search