Brazil CEPEA/ESALQ Index for cotton fluctuates in April

Late in the month, liquidity was low in the domestic market, the Center for Advanced Studies on Applied Economics (CEPEA) said in its latest fortnightly report on the Brazilian cotton market.

“Aware of the volatility of both cotton prices abroad and the dollar against the real, Brazilian sellers were either willing to lower asking prices or raising quotations, majorly some trading companies that supply cotton to the domestic market,” the report said.

“Still, sellers were more interested in closing deals than purchasers since agents from processors reported difficulties to pass on cotton valuations to finished products. Thus, some of these agents either put pressure on cotton prices in the spot or stayed away from the market, working with the product stocked and/or being delivered (previously purchased). The purchasers with urgent needs bought cotton in the spot, which were usually low amounts of high-quality cotton,” the report added.

ALCHEMPro News Desk (RKS)