Brazilian cotton market closed June with firm prices. Even with the harvest beginning in some areas of the Center-Western region, the supply is still low. Besides that, wholesalers and textile mills were more willing to trade.
The CEPEA/ESALQ Index for the type 41-4 (delivered in Sao Paulo city, payment in 8 days - the most common commercialization) accumulates an increase of 1.39 percent in Real from May 30th to June 30th, averaging 1.2966 real or 0.8104 dollar a pound. In nominal terms, the June/08 average is 9.14 percent superior to the Jun/07 one. In real terms, however, the Jun/08 average is 2.42 percent lower.
According to the Brazilian Commodity Exchange (BBM), until June 20th, 959 thousand tons of the cotton from 2007/08 crop were already traded, which represents 62 percent of the total projected by the Conab (1.55 million tons). Of the total registered by the BBM, 292 thousand tons were directed to the domestic market and 667 thousand tons, to the international one.
(Cepea - Brazil)