After increase during April, supported by the lower supply, Brazilian cotton prices started to move down in May - when around 8 percent of the 2006/07 crop should be harvested. Besides inventories from the previous crop, a good volume from the current one has been already offered at inferior prices.
Between May 8th and 15th, the CEPEA/ESALQ Index (type 41-4, delivered in Sao Paulo city) downed 4.7 percent in Real and in dollar, closing at 1.3196 real or 0.6533 dollar a pound. From the beginning of the month to date, the decrease reaches 5.6 percent in Real and 5.13 percent in dollar. Textile mills are still retreated, waiting for new decreases. At the same time, some of them have been settling future delivery contracts for the new crop season cotton.