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Processors and traders were away from the spot market, either due to the lower quality of the batches supplied, or expecting new price drops. Regarding sellers, cotton farmers were not very active in the spot market, focusing on the delivery of the product previously purchased in both the domestic and the international markets, Center for Advanced Studies on Applied Economics (CEPEA) said in its latest fortnightly report on the Brazilian cotton market.
"Trading companies, in turn, were more active in the Brazilian market, attentive to the Real appreciation against dollar, at 7.59 per cent in the month (until Oct. 15)," said CEPEA report.
Conab (National Company for Food Supply) data has indicated that the area to be sown in the 2018/19 crop may increase between 8.2 and 20.4 per cent as compared to the previous season (2017/18). Thus, the Brazilian production may total from 2.08 to 2.32 million tons, an increase between 3.9 and 15.7 per cent. However, the average productivity is estimated at 1,639 kilos per hectare, 4 per cent down compared to the previous season.
In Mato Grosso, the main cotton producing province in Brazil, the area to be sown in the 2018/19 crop is estimated to be between 5 and 20 per cent than in the previous season, according
to data from Conab. Harvesting may reach from 1.35 to 1.55 million tons, higher by 5.3 - 20.3 per cent in the same comparison. In Bahia, the area sown may increase from 13.8 to 21.4 per cent compared to the 2016/17 season. Still, production may oscillate from -4.4 per cent to 2 per cent. The average productivity is forecast to decrease by 16 per cent. (RR)
Fibre2Fashion News Desk – India
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