By admin       2016-07-07

Reluctant purchasing and slow supply of the new cotton crop drove down cotton prices in the Brazilian market, in the second fortnight of June. This happened despite low availability, particularly of good quality cotton.Ginners were of the opinion that as the harvesting season advances; domestic supply will increase in the first fortnight of July.However, some agents also opined that as activities intensify, growers and trading companies may prioritise closing contracts signed earlier for deliveries to the Brazilian and global markets.CEPEA noted that, thus, higher supply in the Brazilian spot market may be observed only in August.The CEPEA/ESALQ Index for cotton type 41-4, delivered in São Paulo and for payment in eight days, dropped 1.16 per cent, closing at BRL 2.6589 or $0.8283 per pound on June 30.CEPEA said that a few agents, mainly ginners were active in the spot market, while purchasers acquired smaller lots from the 2014/15 and 2015/16 crops, to meet immediate demands.Most traded lots from the new crop for prompt-delivery were from Bahia, while a few lots from Mato Grosso, Minas Gerais and Goiás were also available in the market. (AR)

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