Driven by a drop in global cotton prices, Brazilian cotton purchasers and sellers stayed away from the market, reducing liquidity in the Brazilian spot market in the fortnight ended September 15. The nearing of the end of cotton harvesting, with growers prioritising accomplishment of trades, also contributed to the trend in the reporting period.
The CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, increased 1.07 per cent, closing at BRL 2.4827 or $0.7509 per pound between August 31 and September 15.Driven by a drop in global cotton prices, Brazilian cotton purchasers and sellers stayed away from the market, reducing liquidity in the Brazilian spot market in the fortnight ended September 15. The nearing of the end of cotton harvesting, with growers prioritising accomplishment of trades, also contributed to the trend in the reporting period.#
Quoting data from the Foreign Trade Secretariat, CEPEA said that in August alone, 56,100 tons of cotton was exported, up a staggering 238 per cent as against its previous month, in which 14,600 tons was exported.
However, Brazilian cotton imports in the month of August fell to 2,900 tons, down a massive 58.4 per cent compared to July 2016. (AR)
ALCHEMPro News Desk – India
marketing@alchempro.com
