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Brazilian cotton prices oscillate in first week of Feb
20
Feb '17
In the first fortnight of February 2017, Brazilian cotton prices swung back and forth. In the first week of the month, cotton growers remained firm in asking prices, but purchasers did not relent. In the second week, sellers were more flexible regarding quotes and payment terms; however, purchasers were still unwilling to pay the asking prices.

The CEPEA/ESALQ Index, 8-day payment terms, for cotton type 41-4, delivered in São Paulo, closed at BRL 2.7301 or $0.8921 per pound on February 15, down 1 per cent as against on January 31.

According to a CEPEA report, cotton stakeholders expressed optimism regarding cotton production, due to the favourable weather.

The National Company for Food Supply (CONAB) estimates that the sown area for the Brazilian 2016/17 cotton crop, may drop 4.5 per cent when compared to the previous season and will total 911,700 hectares.

Despite this, domestic cotton production is expected to rise 10.3 per cent vis-à-vis the earlier season, and will touch 1.421 million tons, pushed by the 15.5 per cent increase in yield at 1,559 kilos per hectare. (AR)

Fibre2Fashion News Desk – India


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