Brazilian cotton prices lost points in September, as supply got larger with the end of harvesting activities in the Center-Westerner and Northeasterner of Brazil.
The CEPEA/ESALQ Index dropped 3.7 percent comparing Sep 29 to August 31, closing the month at 0.5849 dollar a pound.
Players are betting on better prices for medium term. There is little supply in Brazil, since more than 80 percent of the forecasted production (1,028 thousand tons) was already traded. Day by day, anticipated contracts to the current crop and the futures ones increase.
Until the end of September, more than 640 thousand tons of the cotton from 2006/07 crop were traded. Of this total, 80 percent were for the international market and the rest, for the domestic one.
According to Secex (Foreign Trade Secretariat), cotton exports reached 36.3 thousand tons in September, volume 102 percent superior to the previous month, but 39 percent inferior to the same period of 2005. From January to September, exports totalized 172.6 thousand tons, 9 percent less than in 2005.