Brazilian cotton price marked fluctuations in October’23, revealing a divergence between cotton qualities and pricing dynamics.
- COMMENTS:
“Moments of stability amid buyers insistence on lower prices and seller demands for higher values..” “Earlier this year on March, Brazil cotton price rose by 5.4%” – According to the Center for Advanced Research in Applied Economics (CEPEA).
“By October 26, Brazilian cotton processing had reached 74% of national production (Mato Grosso: 68% / Bahia: 90%).” – The Brazilian Association of Cotton Growers (Abrapa).
“Global cotton production decreased by 4.85% in 2023-2024 (24.603 million tons) compared to the previous year (2022-2023 – 25.857 million tons) on October 27.” – The Cotton Outlook report.
- VISION:
Despite deep interest in Brazilian cotton, purchasers remained inclined to offer reduced prices -> Limited transactions, only focusing on replenishing inventory or immediate consumption. Particularly for high-quality cotton, some sellers stood firm on their price demands, contributing to market stability.
Overall, October experienced decreased in market liquidity attributed to logistical challenges (elevated freight costs and transportation difficulties..)
From September 29 to October 31, the CEPEA/ESALQ Index for cotton reflected a decline of 1.36%, closing at 4.0185 BRL per pound on October 30.
Brazil’s cotton production estimate for 2023-2024 is 3.05 million tons, indicating a decrease of 3.8% from 3.17 million tons the previous year.
Cotco (according to Textiletoday)
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