MUMBAI (Commoditiescontrol) - Liquidity in Brazilian cotton markets was higher last week due to purchasers’ interest. Prices also increased early last week as sellers were firm, especially for high quality batches. In the last few days, however, prices decreased because of higher supply of low quality cotton in the market.
According to agents surveyed by CEPEA, growers are cautious regarding production, output and quality for the 2014-15 season due to rains and low temperatures in the main producing regions.
Some purchasers have interest in trades for prompt delivery and for next month, but they are complaining about quotes. Thus, small amounts have been traded. Industries are waiting for supply to rise as harvesting advances and accomplish of contracts to resume trading.
Between July 13 and 20, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4 (including freight to Sao Paulo city) dropped 0.54 percent, closing at 2.1125 BRL per pound (0.660 dollar/pound) on July 20. In the accumulated of July (until 21th), the Index is 1.06 percent higher than the average of June/15 and 8.52 percent higher than the average of July/14, at 2.1112 BRL per pound (0.667 dollar/pound) - values deflated by IGP-DI from June/15.
According to BBM data (Brazilian Commodity Exchange) calculated by CEPEA, 85.5 percent of the 2013-14 crop, forecast at 1.734 million tons, had already been traded in the partial of July (until 17th). From this total, 55 percent was destined to domestic market and 45 percent, to the international. Regarding the 2014-15 crop, estimated in 1.506 million tons, was registered trades equivalent to 38.2 percent.
Between July 13 and 17, the export parity calculated by CEPEA, FAS (Free Alongside Ship) at Paranagua port, at 1.9584 BRL (0.621 dollar) per pound, dropped 2.64 percent compared to last week (from July 6 to 10). In the same period, Cotlook A Index decreased 1.37 percent and dollar dropped 1.2 percent against Real.
In the same period, the import parity released by CONAB (National Company for Food Supply), based on Cotlook A Index, CIF Sao Paulo averaged 2.5592 BRL (0.812 dollar) per pound, 2.3 percent down compared to the previous week (at 2.6182 BRL or 0.831 dollar per pound).
(By Commoditiescontrol Bureau; +91-22-40015534)
0 Comments 
Post Comment 
