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After hitting BRL 6.00/pound on October 11, a nominal record in the series of CEPEA (Center for Advanced Studies on Applied Economics), cotton prices dropped in Brazil on the following days, becoming stable towards the end of the month. On October 29, the CEPEA/ESALQ Index for cotton closed at BRL 5.9479/pound, 4.96 per cent up from that on September 30.
The monthly average (for October), which closed at BRL 5.9088/pound, was 11.1 per cent higher than that in September and 61.9 per cent up from that in October 2020, in nominal terms. Besides, the average in October is the highest nominal average in the series of CEPEA.
Towards the end of October, average price stabilised in the Brazilian cotton spot market, reflecting the fierce competition between agents for the prices bid and asked by agents, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
After hitting BRL 6.00/pound on October 11, a nominal record in the series of CEPEA (Center for Advanced Studies on Applied Economics), cotton prices dropped in Brazil on the following days, becoming stable towards the end of the month. On October 29, the CEPEA/ESALQ Index for cotton closed at BRL 5.9479/pound, 4.96 per cent up from that on September 30.
“In general, sellers were aware of both the cotton valuations abroad and price rises for oil in October. Cotton farmers were also focused on ending processing and accomplishing contracts, majorly to the international market, worried about high production costs. On the other hand, purchasers were concerned about the weak purchase power of the population in Brazil, which tends to constrain sales in the textile market in first place. These agents claim difficulties to pass on to by-products the high cotton prices,” the report said in its analysis.
Fibre2Fashion News Desk (RKS)
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