Brazilian cotton market started August with firm prices. Between July 31st and August 15th, the CEPEA/ESALQ Index (type 41-4, delivered in Sao Paulo city) upped 1.43 percent in Real, closing at 1.1621 real or 0.5676 dollar a pound on Wednesday, Aug 15.
The market has moved at a better pace. Textile mills and wholesalers were more willing to trade. Growers, in turn, kept focused on accomplishing anticipated contracts, especially for export.
According to the Cepea, there is a great volume of export contracts to be delivered during this month. It means that the context of market should not have large changes this month. Export contracts to be delivered in August averaged 0.5733 dollar a pound, with a minimum price of 0.55 dollar a pound and maximum of 0.64 dollar a pound. Contracts were settled between January/06 and July/07.
Regarding the 2006/07 cotton crop production, the Conab (Brazilian Company for Food Supply) forecasts a volume of 1,520.9 thousand tons, increase 46.5 percent over the 2005/06 crop. Of this total, 69 percent was already traded (477,605 destined for the domestic market and 607,065 for the international one), according to the Brazilian Commodity Exchange registers until Aug 10.