CEPEA: Brazilian cotton type 41-4 for delivery in Sao Paulo up 5.6% month-over-month to 1.7375 real/lb. in January
February 3, 2012
– In late January, several companies operated in the Brazilian cotton market to restock inventories, which has pushed up liquidity. Trades, however, involved small amounts. Purchasers faced difficulties to find high-quality cotton at the end of the month. Moreover, differences between asking and bidding prices limited trades in the period.
Producers remained firm regarding prices of the high-quality cotton. They were flexible only for trades of low-quality cotton, expecting quotes to remain increasing.
At the end of January, most cotton growers were focused on the planting activities of the second crop of cotton. The weather stabilized in the Triângulo Mineiro region, favoring the development of crops. However, heavy rains registered in the previous weeks led producers to expect losses in production.
The CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) increased 5.6% in the accumulated of the month (between Dec. 29 and Jan. 31), and closed at 1.7375 real or 0.9957 dollar per pound on Jan. 31.