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Cotton prices rise, hitting R $ 6 per pound in Brazilian market

Cotton prices reached £ 6.00 in the Brazilian market during the first two weeks of October. This is the nominal record of a series of Centers for Advanced Studies in Applied Economics (CEPEA), which began in 1996, with export equality in dollars. CotlookA Index and ICE futures futures are at the highest level in the last decade.

“The boost came from both the appreciation of synthetic fibers, a competitor in the textile industry, and high demand, primarily from Asia. In the Brazilian spot market, prices also rose due to the firm attitude of sellers. These agents did not want to lower the asking price and were forced to pay more for some processors, primarily low-stock cotton, but logistical issues and concerns about China constrained the assessment. “CEPEA said in its latest biweekly report on the Brazilian cotton market.

Between September 30th and October 15th, the Cotlook A index rose 2.6% to $ 1.1305 per pound on October 15th. The US dollar rose 0.4% from the real price to 5.46 BRL on October 15. FAS (Free Alongside Ship) will be available on October 15th, 3.1, at 5.3949 BRL / lb ($ 0.9881 / lb) at Santos (SP) Port and 5.4054 BRL / lb ($ 0.9900 / lb) at Paranagua (PR) Port. I closed it. Percentage increase since September 30th.

Cotton prices reached £ 6.00 in the Brazilian market during the first two weeks of October. This is the nominal record of a series of Centers for Advanced Studies in Applied Economics (CEPEA), which began in 1996, with export equality in dollars. CotlookA Index and ICE futures futures are at the highest level in the last decade.

In the Brazilian market, the cotton CEPEA / ESALQ index closed at 6.0113 BRL / lb on October 11 and fell to 5.9587 BRL / lb on October 15. That is, it has increased by 5.15% since September 30th. It is low in the domestic spot market due to the gap between the asking price and the bid price.

The October monthly average (taking into account the first half of the month) is nominally 61.6% higher than the October 2020 monthly average. Therefore, the area allocated to Brazilian cotton is expected to be larger than next season, but high production costs and inputs, mainly fertilizer purchase difficulties, can constrain the area increase.

According to Conab (Brazil’s National Company for Food Supply), Brazil’s cotton area could grow 10.2% in the 2021-22 season to 1.51 million hectares. Productivity could increase 3.1% to 1,772 kg / hectare, and production could increase 13.7% to 2.68 million tonnes. Domestic consumption is expected to increase 2.5% between the 2020-21 and 2021-22 seasons to 765,000 tonnes. Exports are about 2 million tonnes, which may have contributed to the reduction of final inventories.

Meanwhile, according to Secex data, Brazil exported 140,210 tonnes of cotton in September, well above the 50,780 tonnes (+ 176.1%) shipped in August 2021. September 2020 (158,830 tons).

Fiber2Fashion News Desk (RKS)



Cotton prices rise, hitting R $ 6 per pound in Brazilian market

Source link Cotton prices rise, hitting R $ 6 per pound in Brazilian market

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