The prices of cotton continued to rise in Brazil in the month of March due to sellers staying firm on their quotes, majorly observing the high increases in future contracts at ICE Futures. Between February 25 and March 31, the CEPEA/ESALQ Index for cotton rose by 5.4 per cent, according to the Center for Advanced Studies on Applied Economics (CEPEA).
On March 31, the CEPEA/ESALQ Index closed at BRL 7.2585/pound, setting a new record since the CEPEA series began in 1996.
As for purchasers, in March, many processors were working with the cotton stocked and/or receiving the product previously purchased because of the price levels during the month, the latest fortnightly report on Brazilian cotton said.
According to CEPEA collaborators, some processors were working with reduced capacity, claiming difficulties to sell by-products and raise their prices. “Retailers reported weak sales, as the purchase power of Brazilian people has been low. Some deliveries and payments were even postponed.
On the other hand, sellers continued to ask higher prices, constraining liquidity in the spot market.”
Besides, the quality of the cotton available did not meet processors’ requirements. This also limited sales, the report said.
Explore more News here