Since March this year, Brazilian cotton prices keep moving down, even with the off-season period. From Mar 31st and April 30th, the CEPEA/ESALQ Index for the type 41-4 (delivered in Sao Paulo city, payment in 8 days - the most common commercialization) decreased 7.84 percent in Real, closing at 1.3107 real or 0.7896 dollar a pound on Wednesday.
Growers and wholesalers kept willing to trade in order to settle stocks from the 2006/07 crop. Besides that, limited demand and Real appreciation against the dollar, which affects import and export parities, also reinforced growers' behavior of accepting lower values.
According to the Brazilian Commodity Exchange (BBM), until April 25th, 880 thousand tons of the cotton from 2007/08 crop were already traded, which represents 57 percent of the total projected by the National Company for Food Supply - Conab - (1.56 million tons). Of the total registered by the BBM, 216 thousand tons are directed to the domestic market and 664 thousand tons, to the international one. About the national cotton consumption, the Conab forecasts it at 1.05 million tons. (Cepea - Brazil)