Brazilian cotton price marked fluctuations in October’23, revealing a divergence between cotton qualities and pricing dynamics.
According to a report by the Center for Advanced Studies on Applied Economics (CEPEA), moments of stability amid buyer insistence on lower prices and seller demands for higher values.
While there was a keen interest in new transactions, purchasers remained inclined to offer reduced prices, resulting in limited trades focused on inventory replenishment or immediate consumption.
Particularly for high-quality cotton, some sellers stood firm on their price demands, contributing to market stability.
Overall, October experienced decreased in market liquidity, attributed to logistical challenges such as elevated freight costs and transportation difficulties.
The Brazilian Association of Cotton Growers (Abrapa) disclosed that, by October 26, cotton processing in Brazil had reached 74% of national production, with Mato Grosso at 68% and Bahia at a 90%.
Over the period from September 29 to October 31, the CEPEA/ESALQ Index for cotton reflected a 1.36 percent decrease, closing at BRL 4.0185 per pound on October 30.
Besides that, the Cotton Outlook report projected a 4.85 percent global decrease in cotton production for 2023-24 (24.603 million tons) compared to the previous year (2022-23 - 25.857 million tons) on October 27.
The estimate for Brazil's cotton production in 2023-24 is 3.05 million tons, indicating a 3.8% decline from the previous year's figure of 3.17 million tons.
Earlier this year on March, Brazil cotton price rose by 5.4%, according to the Center for Advanced Studies on Applied Economics (CEPEA).
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