Even with the off-season period, Brazilian cotton prices moved down during the first fortnight of April. Between March 31st and April 15th, the CEPEA/ESALQ Index for the type 41-4 (delivered in Sao Paulo city) decreased 3.68 percent in Real, closing at 1.37 real or 0.81 dollar per pound this Tuesday. Besides the weak domestic demand, the pressure also came from the import parity.
According to the National Company for Food Supply (Conab), the import parity based on the first expire at the New York Board of Trade (ICE Futures) is at around 1.44real or 0.85 dollar per pound - at the beginning of March, the average was of 1.65 real or 0.9880 dollar per pound.
Wholesalers and tradings, in order to settle the product from the 2006/07 crop, have accepted inferior prices. Growers also traded at lower values in some cases. In most part of the time, however, they remained firm, since there is a small volume of the cotton from the 2006/07 crop to be commercialized.
Regarding exports, according to the Secex (Foreign Trade Secretariat) in March/08, the volume totaled 23.10 thousand tons, 36.9 percent lower over February. (Cepea - Brazil)