During April 29 to May 16, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, rose slight 0.7 per cent. On May 16, the price was 2.6866 BRL ($0.768) per pound.
Drop in international cotton market quotes like New York Board of Trades and Cotlook A attracted cotton trading companies back to the market, Cepea, the Sao Paulo University linked research centre, said in its latest fortnightly market analysis.
Some traders and merchants, however, were more flexible, decreasing asking prices, the report said.
Regarding purchasers, processors were active in the market, acquiring many small batches for quick delivery in May. Active purchasers and sellers agreed on the prices and deadlines, which averaged 10 days in the first week of the month – the highest was on May 6, averaging 12.76 days.
Meanwhile, the crop survey report released by the National Company for Food Supply, Conab, indicated new retraction in the Brazilian cotton output compared to March 2016, by 2.5 percentage points.
The Conab report estimated 2015-16 harvesting at 1.44 million tons, 7.8 per cent lower than the 2014-15 crop. Sowed area was 1.6 per cent smaller in the same comparison, pressed by the states in the Northeast. The expected Brazilian average productivity was 1,589 kg/ha, 6.2 per cent lower than previous season. (RKS)
ALCHEMPro News Desk – India
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