Prices keep moving up with growers retreat
Brazilian cotton prices keep moving up. As usual for this period, the support comes especially from growers' retreat. Between November 30th and December 13th, the CEPEA/ESALQ Index (type 41-4, delivered in Sao Paulo city) upped 2.7 percent, closing the period at 0.6203 dollar a pound. In the accumulated of November, the increase was of 3.07 percent. The average in that month was of 1.2889 real or 0.5967 dollar a pound, down 0.5 percent in relation to October.
A great deal of growers should intensify trades from the next year on, when they bet on higher prices.
Regarding planting activities of the 2006/07 crop, some areas have been damaged by the great volume of rain. According to Conab (National Company for Food Supply), Brazilian planting area should decrease between 5 and 8 percent. For Mato Grosso state, Conab estimates a reduction between 12 and 15 percent.
