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Fibre2Fashion
Published
Mar 7, 2017
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Smaller 2016 output boosts Brazilian cotton prices

By
Fibre2Fashion
Published
Mar 7, 2017

Boosted by low domestic supply, due to the smaller output in 2016 and large export volumes, cotton prices rose in the Brazilian markets in the last one month, while they increased in global markets, influenced by high demand and the slight decrease in final stocks. Brazilian cotton processors have been importing cotton to meet demand in the previous month.



Global cotton quotes expanded in late February; however, cotton sales were more attractive in the Brazilian market. The monthly price averages in January and February in Brazil were almost 5 per cent higher than Cotlook A and when considering export parity, domestic prices were 21 per cent higher.

In February, the CEPEA/ESALQ Index, 8-day payment terms, for cotton type 41-4, delivered in São Paulo, dropped 1.59 per cent, closing at BRL 2.7134 or $0.8724 per pound on February 24, while the average in February, at BRL 2.7412 per pound, is 1.05 per cent lower than in January.

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