MUMBAI (Commoditiescontrol) - Cotton prices in Brazil continued to stay firm even as buying cools off. Traders and speculators are betting on stable prices or even decreases in the upcoming weeks tracking soon to end harvesting and with advances in cotton processing.
In Mato Grosso State, the Association of Cotton Producers (AMPA) shows 90 percent of planted area has already been harvested in the state. Price composition takes into account also a reduction of 11.6 percent in the current crop production as well as increases in export parity pushed up by dollar valuation against Real. According to data from the Brazilian Commodity Exchange (BBM) obtained by CEPEA, almost half of cotton recently harvested has already been traded.
Last week, cotton availability increased slightly in the Brazilian market. Purchasers, however, were retracted due to quality problems in some batches and perspective of growth supply. Only industries and traders with immediate needs to purchase were willing to pay prices higher than in the previous week, but for small batches.
Between September 8 and 14, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4 (including freight to Sao Paulo city) increased 0.67 percent, closing at 2.3220 BRL/pound (0.605 USD) on Monday. The average prices in the partial of September (until 14th) is 2.2982 BRL/pound (0.604 USD), 4.38 percent up compared to August/15 and 26.25 percent higher than in September/14 (values deflated by IGP-DI from August/15).
Between September 8 and 11, the export parity calculated by CEPEA, FAS (Free Alongside Ship) at Paranagua port, averaged 2.3157 BRL (0.603 USD) per pound, 2.35 percent up compared to the previous week (from August 31 and September 4). In the same period, Cotlook A Index decreased only 0.18 percent and dollar rose 2.45 percent regarding Real. In Brazil, few trades to export were settled last days.
According to the Brazilian Foreign Trade Secretariat (Secex), almost 50 thousand tons were exported in August/15, 216 percent up compared to July, but 47.8 percent down than in August/14. The revenue increased 246 percent from July to August, totaling 79.8 million dollars. In the year to date, revenue increased 4 percent compared to the same period in 2014, totaling 482 million dollars this year. In Real, revenue increased 39.6 percent and average price, 8.2 percent. In volume, exports raised 29.1 percent in the partial of 2015 compared to 2014.
Brazilian imports, on the other hand, decreased strongly. From January to August, Brazil imported 1.17 thousand tons, 96 percent down compared to the same period in 2014. The amount spent decreased 94 percent, at 3.27 million dollars. From July to August/15, imports dropped 6.4 percent, at 88.3 tons. Compared to August/14, on their turn, imports decreased 96 percent (Secex data).
(By Commoditiescontrol Bureau; +91-22-40015532)
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