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.