Farmers maintained their stance against lowering asking prices throughout July, concentrating on crop activities, and fulfilling term contracts. The support of international values also continued to prop up quotes in the Brazilian market, leading to an increase in the month, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
Despite the low liquidity, trading companies engaged in cotton transactions, motivated by firm demand and an impressive export performance. However, certain industry agents resisted closing deals, citing the underwhelming sales performance of manufactured products within Brazil.
The CEPEA/ESALQ Index for cotton witnessed a significant increase of 9.7 per cent, reaching BRL 3.9484 per pound on July 31. Conversely, the monthly average of the cotton Index decreased by 3.5 per cent from that in June, settling at BRL 3.81. This marked the domestic prices as 2 per cent lower than the export parity on average for the month.
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