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Cepea, August 5, 2024 – The monthly average of cotton prices in July is the highest since March/2024, in real terms. In general, the upward trend was related to the limited supply in the spot market and to the fact that many sellers were firm regarding prices, focused on accomplishing contracts.
However, values dropped in some periods of the month, related to the fact that some other sellers were flexible regarding values, since they were trying to sell-off batches of the 2022/23 crop and/or to make cash for the short-term.
The monthly average of the Index (BRL 4.0793/pound) surpasses in 3.76% that registered in June/24 and in 3.1% that in July/23, in real terms (IGP-DI June/24). Moreover, it is the highest since March/24 (BRL 4.3019/pound), also in real terms. Between June 28 and July 31, the CEPEA/ESALQ cotton Index (payment in 8 days) moved up 2.67%, to close at BRL 4.0757 per pound on July 31.
Cepea calculations show that the export parities FAS (Free Alongside Ship) dropped 6.6% from June 28 to July 29, to BRL 3.8782/pound (USD 0.6890/pound) at the port of Santos (SP) and BRL 3.8887/pound (USD 0.6908/pound) at the port of Paranaguá (PR) on July 29. The Cotlook A Index (product delivered in the Far East) decreased 7.2% in the same period, to USD 0.7930/pound on July 29.
Data from Abrapa (Brazilian Cotton Producers Association) indicate that 28.39% of the 2023/24 cotton area in Brazil had been harvested up to July 25, and 9.96% of the production had been processed.
(Cepea-Brazil)
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Fonte: Cepea