Home / Knowledge / News / Textiles / Brazilian cotton prices rise in late November
Brazilian cotton prices rise in late November
03
Dec '16
Cotton prices in the Brazilian market resumed increasing trend in later part of November. In the first fortnight of the month, cotton prices increased slightly but stabilised in mid-month, only to again see rising trend in end of November, Center for Advanced Studies on Applied Economics (Cepea-Brazil) said in its latest fortnightly report.

The scenario prior to the end of the month was linked to the gap between bidding and asking prices, which, in turn, was related to the quality of the cotton available in the market. When quality was high, agents disagreed about the available volume. While some agents believed cotton supply was already low, others claimed that there were still batches to be traded in the off-season period. In that scenario, liquidity was low in the Brazilian market.

However, later in the month, Brazilian cotton prices resumed increasing. Trading companies and cotton growers that were active in the market were firm in asking prices, keeping an eye on the fluctuations of international and dollar quotes and on the low supply of high-cotton-quality from the 2015-16 season. Besides, Brazilian sellers expect higher prices in the first semester of 2017.

During the second fortnight of November, few processors were seen interested in new cotton purchases in the spot market. On the other hand, trades involving cotton for delivery in 2017 were at a good pace. Dealers were more active in the spot market, buying and selling cotton batches.

In November, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, increased 4 per cent, closing at 2.6077 BRL ($0.77) per pound on November 30.

 According to data from Brazilian Stock Exchange of Goods (BBM) tabulated by Cepea, 67.9 per cent of the 2015-16 Brazilian crop, estimated at 1.28 million tons, had been traded until late November. Of that total, 49.2 per cent was allocated to the Brazilian market and 50.8 per cent to the international market. Regarding the 2016-17 crop, estimated at 1.4 million tons, 23.1 per cent has been traded. Of that volume, 24.5 per cent was allocated to the domestic market and 75.5 per cent to the international market.

For the international market, even with the current dollar fluctuations, trades were at a good pace in November, involving cotton from the 2015-16 season (to export still in 2016) and from the 2016-17 crop. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Sri Lanka reduces VAT on imported fabric to 5%

Textiles | On 24th Sep 2018

Sri Lanka reduces VAT on imported fabric to 5%

Considering the requests made by the stakeholders in the fabric...

E-com firms in India to deduct 1% TCS under GST from Oct 1

Apparel/Garments | On 24th Sep 2018

E-com firms in India to deduct 1% TCS under GST from Oct 1

E-commerce companies in India will have to deduct 1 per cent tax...

Courtesy: Andritz

Textiles | On 24th Sep 2018

'Strength of economy, demographics drive nonwovens demand'

The strength of the economy and demographic trends are the main...

Interviews View All

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Top executives, Fabric manufacturers

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Top executives, Retailers

Top executives
Retailers

Weak rupee breeds inflation

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

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

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

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

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

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


September 2018

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

news category


Related Categories:

Advanced Search