Brazilian cotton market has been moving at a slow pace. Growers keep focusing on accomplishing contracts, as usually happens in this time of year. On November 16, the CEPEA/ESALQ Index averaged 59.18 dollar a pound, almost unchanged in this first quince of November.
During the last week, the gap between the minimum and the maximum prices reduced in Brazil. It means that the current level may be the highest acceptable by buyers and the lowest allowable by sellers.
According to Conab (National Company for Food Supply), the cotton cultivated area in 2006/07 season in Brazil should increase between 14.2 and 19.8 percent, totaling a production around 1.25 and 1.3 million tons.
Regarding exports, Brazilian cotton trades totaled 221.2 thousand tons between January and October of 2006, volume 13.4 percent lower than that of the same period in 2005 - according to Secex (Foreign Trade Secretariat).