MUMBAI (Commoditiescontrol) - In the just gone by fortnight ended July 15, besides weakened pace of trades in early July, cotton prices remained high in the Brazilian market.
“Low cotton supply for prompt delivery and purchasers’ need to trade pushed quotes up in the first fortnight of July,” a CEPEA report revealed.
“In the upcoming weeks, advance of harvesting should make cotton farmers turn their attention to accomplish delivery cotton from contracts,” it said.
The CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, which includes freight to Sao Paulo increased 1.55 percent, closing at real 2.1309 per pound or 0.68 dollar per pound on July 15.
“With regards to international sales, few trades had been done in early July especially for the 2015-16 crop, but quotes had not been settled yet,” the report noted.
The US dollar increased against the Brazilian real pushing up export parity, as the Cotlook A Index and future contracts on ICE Futures decreased.
According to the report, Brazilian cotton production might total 1.5 million tons in the 2014-15 season, 13.2 percent lower than in the previous crop due to the decline in acreage.
It added that the yield should average 1,543 kilo per hectare, almost the same as last crop, while in Mato Grosso, the biggest cotton producing region, harvest may be 14 percent higher.
In the Northeast, the second main Brazilian cotton producing region, CEPEA expects cotton production to drop 8.5 percent over the previous season.
Between May and June, the Foreign Trade Secretariat (Secex) informed that Brazilian exports dropped 1.7 percent over the same period in the earlier year.
But in the six months to June 2015, exports are 38 percent higher than in the same period in 2014, totaling 379,000.
The report further informed that revenue from exports totaled $26.2 million in June 2015, 1.5 percent down, when compared to May 2015.
(By Commoditiescontrol Bureau; +91-22-40015534).
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