Cepea, November 19, 2024 – Cotton trades moved at a good pace in mid-November, especially because of the firm demand. Players were searching for new batches for the end of the year and/or to replenish inventories. Some of these purchasers, however, offered lower prices compared to those asked by sellers. As a result, average quotations continue low.
Most sellers, in turn, continued focused on accomplishing term contracts for both domestic and international markets. According to data from Abrapa, cotton processing activities hit 77.2% of the production in Brazil by November 7. It leads producers who are more capitalized to wait for better conditions to trade the product.
Between October 31 and November 18, the CEPEA/ESALQ cotton Index (payment in 8 days) decreased 0.66%, to close at BRL 3.9077 per pound on Nov. 18.
The USDA indicated on Nov. 8 that the 2024/25 global wheat production is likely to hit 25.295 million tons, downing 0.4% compared to data released in October, but moving up 2.8% in relation to the 2023/24 crop. The world consumption is estimated at 25.087 million tons, -0.4% and +1,2% in the same comparisons. As a result, the supply may be 0.83% higher than the demand in 2024/25.
(Cepea-Brazil)
Centro de Estudos Avançados em Economia Aplicada – CEPEA-Esalq/USP
