The monthly average, at BRL 6.1111/pound, is a nominal record in the series of CEPEA, 3.42 per cent higher than that in October 2021, according to the Center for Advanced Studies on Applied Economics (CEPEA).
“Values were underpinned by sellers’ firm stance on prices, increases in the export parity price and high values abroad. As most Brazilian farmers have sold a large volume of the 2020-21 output, they are now prioritising deliveries to both the domestic and the international markets,” CEPEA said in its latest fortnightly report on the Brazilian cotton market.
“Traders have been purchasing cotton to accomplish contracts, and some purchasers are trying to ensure the product for delivery along 2022, which increased liquidity for term contracts for the 2020-21 and 2021-22 seasons. The agents from processors with urgent needs had to pay higher prices for cotton,” the CEPEA report added.
ALCHEMPro News Desk (RKS)
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