Cotton prices rise for 5th consecutive month in Brazilian market

03 Dec '21

1 min read

Pic: Joe Sohm | Dreamstime.com

Cotton prices increased for the fifth consecutive month in Brazil’s domestic market in November. The CEPEA/ESALQ Index for cotton rose by 5.25 per cent to BRL 6.2602/pound on November 30. Earlier on November 26 it had set a new nominal record in the series of CEPEA, by closing at BRL 6.3389/pound, surpassing the previous record of BRL 6.30/pound.

The monthly average, at BRL 6.1111/pound, is a nominal record in the series of CEPEA, 3.42 per cent higher than that in October 2021, according to the Center for Advanced Studies on Applied Economics (CEPEA).

“Values were underpinned by sellers’ firm stance on prices, increases in the export parity price and high values abroad. As most Brazilian farmers have sold a large volume of the 2020-21 output, they are now prioritising deliveries to both the domestic and the international markets,” CEPEA said in its latest fortnightly report on the Brazilian cotton market.

“Traders have been purchasing cotton to accomplish contracts, and some purchasers are trying to ensure the product for delivery along 2022, which increased liquidity for term contracts for the 2020-21 and 2021-22 seasons. The agents from processors with urgent needs had to pay higher prices for cotton,” the CEPEA report added.

Fibre2Fashion News Desk (RKS)

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