According to a CEPEA report, cotton closed with high prices in the Brazilian market in September, while at the same time, trades in the spot market reduced.
The CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, which includes freight to São Paulo city, rose 4.32 per cent over August last month.
“In late September, with harvesting almost finished and grinning advancing, processors were receiving already traded cotton, which decreased demand in the Brazilian spot market,” the report added.
Wholesale agents, however, were more active even if good part of negotiations in the spot market involved small batches for various types of cotton.
“Sellers were also focused on accomplishing contracts and, thus, were asking for higher prices in the spot trades,” it informed.
According to data from the Brazilian Commodity Exchange (BBM), 47.4 per cent of the 2014/15 crop, forecasted at 1.533 million tons, had already been traded in September.
From this total, 35.4 per cent went to the domestic market with the rest being exported to international markets.
CEPEA further added that of the 2015/16 crop forecasted by USDA at 1.46 million tons, 22.5 per cent had already been traded. (AR)