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Cepea, June 4, 2024 – The good pace of North-American cotton exports in May indicates that the international market was demanding more of the product. Prices in the Far East increased, boosting the values at ICE Futures (NY). As a result, in Brazil, cotton values were sustained by the higher export parity; on the other hand, the harvesting progress of the 2023/24 crop, which may register good production, limited domestic price rises.
Cepea calculations show that the export parities FAS (Free Alongside Ship) moved up 7.3% from May 20-27, to BRL 4.0868/pound (USD 0.7902/pound) at the port of Santos (SP) and BRL 4.0973/pound (USD 0.7922/pound) at the port of Paranaguá (PR) on May 27. The Cotlook A Index (product delivered in the Far East) increased 5.82% in the same period, to USD 0.9085/pound on May 27. Dollar quotes upped 1.23% against Real between May 20 and 27, closing at BRL 5.172 on May 27.
In Brazil, the CEPEA/ESALQ cotton Index decreased only 0.54%, closing at BRL 3.9024 per pound on May 31.
SHIPMENTS – According to data from Secex, in 12 producing days of May, Brazilian shipments totaled 141.4 thousand tons, 134.4% more than that registered in the entire month of May last year (60.32 thousand tons), but still 41.4% lower compared to April/24 (241.5 thousand tons).
In the partial of the 2022/23 season (from August/23 to the partial of May/24), Brazil exported 2.265 million tons, for an increase of 56.3% compared to the 2021/22 crop (August/22 – July/23), of 1.45 million tons.
(Cepea-Brazil)
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Fonte: Cepea