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Cepea, May 6, 2024 – Cotton prices dropped in the domestic market in April for the second month in a row. The CEPEA/ESALQ Index moved down 4.06% from March 28 to April 30, closing at BRL 3.9235/pound on April 30.
Price decreases are related to the fact that some sellers are more flexible concerning prices, since they are with their eyes on significant decreases in the international market, ending stocks and the expectation of one more crop with a good output. Moreover, players from some industries offered smaller values to close deals in the spot market, reinforcing the pressure on quotations. Another share of sellers is firm, while other purchasers end up paying more for the product with higher quality, a scenario that limits more significant price drops.
EXPORTS – According to data from Secex, Brazilian shipments totaled 240 million tons in 20 working days of April.
The Cotton Outlook estimates a global production at 25.286 million tons in the 2024/25 crop, 2.46% more than the volume expected for 2023/24 (24.68 million tons) and an increase of 1.34% in relation to that projected in the month before. As for Brazil, the output may reach 3.3 million tons in 2024/25, for a decrease of 8.33% compared to the previous season (3.6 million tons).
(Cepea-Brazil)
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Fonte: Cepea