With almost all the production from the 2006/07 crop traded, cotton growers have been turning their attentions to the farming conditions of the new crop (2007/08) and to the Pepro's auctions. According to the Brazilian Commodity Exchange (BBM), until June 13th, 1.417 million tons of the cotton from 2006/07 crop were already traded, which represents 93 percent of the total projected by the Conab (1.52 million tons).
Regarding the new crop, in some regions of Mato Grosso state, the harvest activities should be intensified at the beginning of July. In the region of Campo Novo do Parecis, growers bet on cotton available from the second fortnight of June on. It is important to remember that these growers have anticipated contracts to be accomplished from July on, both in the domestic and international markets.
The Pepro's auction that happened on June 3rd was a success for Brazilian cotton market - it traded all the supply (314 thousand tons). A new auction is scheduled to occur on June 17th. Until now, two auctions have happened related to the 2007/08 crop, totaling 682.68 thousand tons, which represents 43.89 percent of the production forecasted by the Conab (1.55 million tons).
Between May 30th and June 13th, the CEPEA/ESALQ Index for the type 41-4 (delivered in Sao Paulo city, payment in 8 days - the most common commercialization) decreased 2 percent in Real, closing at 1.2526 real or 0.7656 dollars per pound on Friday. In the accumulated of May, the decrease was of 2.43 percent. The monthly average was of 1.2957 real or 0.7805 dollar a pound, 4.79 percent lower compared to April/08. (Cepea - Brazil)