MUMBAI (Commoditiescontrol) - Brazil cotton Index decreased 1 percent in October due to high cotton availability, but with low quality. Supply of cotton from type 41-4 above keeps low in the domestic markets. Sellers have become more active in liquidating their stocks.
The cotton Index decreased in the month after recording gains for four consecutive months to touch the highest price in 2015 (at 2.3656 BRL per pound on October 2).
The CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4 decreased 1.04 percent in October, at 2.3305 BRL (0.603 USD) per pound on Friday (30). Between October 23 and 30, the Index dropped 0.71 percent. The average of October, at 2.3512 BRL (0.606 USD) per pound, is 1.27 percent higher than in September/15 and 30.6 percent up compared to Oct/14 (values deflated by IGP-DI from September/15).
Exports, in turn, were warmed compared to September. Exports parity oscillated significantly due to Cotlook A Index and exchange rate, but the accumulated rise in the month reached 0.51 percent.
Between October 26 and 30, the export parity calculated by CEPEA, FAS (Free Alongside Ship) at Paranagua port, averaged 2.3190 BRL (0.595 USD) per pound, 2.37 percent down compared to the previous week (from Oct. 19 to 23). In the same period, Cotlook A Index decreased 1.83 percent and dollar, 0.49 percent against Real.
CEPEA data show that exports prices in October for shipments in November and December 2015 averaged 0.6465 USD per pound, 0.3 percent up compared to data from September/15. Exports in the second semester of 2016 (regarding the 15/16 crop) averaged 0.6672 USD per pound, 0.99 percent up.
According to BBM data (Brazilian Commodity Exchange) calculated by CEPEA, 50.9 percent of the 2014/15 crop, forecast at 1.53 million tons, had already been traded until late October. From this total, 37.8 percent was allocated to the domestic market and 62.2 percent, to the international. Regarding the 2015/16 crop, forecasted at around 1.54 million tons, 22.2 percent was traded.
(By Commoditiescontrol Bureau; +91-22-40015532)