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Brazilian cotton prices drop in Sept, as harvesting ends
Oct '17
Brazilian cotton prices drop in Sept, as harvesting ends
Brazilian cotton growers intensified processing in late September to fulfil the previously closed contracts before harvesting comes to an end. They were also trying to close new contracts, both for this year and for the first semester of 2018, according to the fortnightly report released by the Center for Advanced Studies on Applied Economics (Cepea).
Meanwhile, some purchasers left the market after receiving the delivery of previously purchased product and expecting prices to drop in the coming weeks.
In late September, prices oscillated either due to flexibility of some sellers and the low bidding prices from processors, or underpinned by the firm position of growers.
During the month of September, the CEPEA/ESALQ Index dropped 1.84 per cent, closing at 2.4158 BRL ($0.7628) per pound on September 29. The monthly average, at 2.4380 BRL per pound, was a slight 0.17 per cent higher than that in August 2017.
According to Brazilian Institute of Geography and Statistics, textile production in July 2017 increased 0.37 per cent, compared to that in the previous month, but increased 4.9 per cent over July 2016. For the clothes and accessories sector, production decreased 2.79 per cent from June 2017 to July 2017, and 1.72 per cent compared to the same period of 2016. (RKS)

Fibre2Fashion News Desk – India

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