Cepea, September 16, 2024 – Cotton prices fluctuated in the domestic market in the beginning of September. Difficulties to agree prices and/or quality of the batches available in the spot market continued to limit liquidity. Moreover, sellers remained prioritizing term contracts. Between August 30 and September 13, the CEPEA/ESALQ cotton Index (payment in 8 days) upped 1.2%, to close at BRL 3.9321 per pound on Sept. 13.
It is worth noting that, in August, the average cotton price moved down in the domestic market, due to the lower export parity, to international price drops, to the need of sellers to make cash flow and the progress of both the harvesting and processing activities. From July 31 to August 30, the CEPEA/ESALQ cotton Index (payment in 8 days) downed 4.65%, the most significant decrease since March/24 (-6.3%).
Abrapa reports that 95.53% of the 2023/24 crop had been harvested in Brazil up to Sept. 5, and 40.3% of the production had been processed.
Data released by Icac on September 4 indicate that the 2024/25 global production may total 25.62 million tons, 2.7% less than in August/24, but 6.21% more than the previous crop. The world consumption, in turn, continues estimated at 25.87 million tons, stable compared to August and 3.56% above that verified in 2023/24.
(Cepea-Brazil)
