MUMBAI (Commoditiescontrol) - Cotton prices declined in Brazil during the first week of November owing to increased willingness in selling. Aggressive selling limited buying activity, which further pressured the prices.
Growers and traders who are in need to make cash, offer batches especially to domestic purchasers. This position is also linked to decrease in export parity in the first fortnight of November.
Demand for prompt delivery or for early December is low. In general, purchasers are retracted, complaining about the weak development of by-products market and difficulties to pass on costs to the end product.
From November 9 to 16, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in Sao Paulo, decreased 0.74 percent, closing at 2.3007 BRL (0.603 USD) per pound on Monday (16). In the partial of the month (until 16), the Index decreased 1.28 percent. The monthly average, at 2.3145 BRL (0.610 USD) per pound, fell 1.56 percent compared to Oct/15, but increased 28.07 percent regarding November/14 (values deflated by IGP-DI from October/15).
Export parity also decreased in the first fortnight of the month, pushed down by dollar devaluation against Real - reduced 0.9 percent in the period. From November 9 and 13, the export parity calculated by CEPEA, FAS (Free Alongside Ship) at Paranagua port, averaged 2.2507 BRL (0.594 USD) per pound, 0.28 percent down compared to the previous week (from Nov. 3 to 6). In the same comparison, Cotlook A Index decreased 0.55 percent and dollar increased 0.28 percent against Real.
Brazilian exports of cotton keep a good pace. From September to October/15, data from the Foreign Trade Secretariat (Secex) show exports increased 54.6 percent, reaching 161.2 thousand tons. In the partial of the year (until October), exports are 7.56 percent up compared to the same period in 2014, totaling 578.5 thousand tons. In October, the revenue totaled 253.5 million dollars, 52.6 percent higher than in September. In Real, revenue also increased, at 983.2 million BRL, 51.5 percent up. Brazilian imports in October decreased 30.6 percent, at 375 tons. In the accumulated of 2015, imports decreased 93.31 percent.
(By Commoditiescontrol Bureau; +91-22-40015532)