In the first fortnight of November, liquidity was low in the Brazilian cotton market, mainly because sellers withdrew from the market and buyers also did not show interest. Most of the sellers did not display interest in trading, keeping in mind the low availability of cotton type 41-4, volatility in international cotton prices as well as the US dollar.
However, cotton traders and merchants were more flexible, since they had in stock previously purchased cotton for ready delivery.In the first fortnight of November, liquidity was low in the Brazilian cotton market, mainly because sellers withdrew from the market and buyers also did not show interest. Most of the sellers did not display interest in trading, keeping in mind the low availability of cotton type 41-4, volatility in international cotton prices as well as the US dollar.#
The CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, rose 1.94 per cent between October 31 and November 14, closing at BRL 2.5559 or $0.7427 per pound on November 14.
Data released by National Company for Food Supply (CONAB) on November 10 informed that the planted area in the Brazilian 2016-17 cotton season may be down between 1 and 6.9 per cent as against the prior crop.
According to CEPEA, the decline in area may be compensated by a projected 16 per cent rise in yields, which would result in raw cotton production of between 1.393 and 1.479 million tons, up between 8.1 and 14.8 per cent. (AR)
ALCHEMPro News Desk – India
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