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Brazilian cotton prices weaken in first fortnight of Oct
21
Oct '16
Although Brazilian textile mills expressed in purchasing cotton this month, they are seeking lower quotes as against those prevalent in September, on the premise that the quality of the available cotton is below expected levels. This has led to weakening of Brazilian cotton prices and also limited the number of trades, in the first fortnight of October.

According to a recent CEPEA report, the slip in prices led to cotton growers and sellers continuing to focus on accomplishing previously signed contracts rather than signing new deals. Cotton trading companies too did not seem active, despite the price drop in the global market.

Between September 30 and October 14, the CEPEA/ESALQ Index for payment in 8 days, for cotton type 41-4, delivered in São Paulo, declined marginally by 0.33 per cent, closing at BRL 2.5160 or $0.7855 per pound on October 14.

The report also informed that in September 2016, 103,900 tons of cotton were exported, a massive surge of 85 per cent compared to August 2016. However, cotton imports fell by a steep 86.1 per cent in September 2016 to 414.5 tons as against August 2016. (AR)

Fibre2Fashion News Desk – India


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