After increasing in January, Brazilian cotton prices got stable during last days. In Real, between January 31st and February 7, the CEPEA/ESALQ Index upped only 0.23 percent. In dollar, instead, due to the valuation of the Real against the dollar, prices increased 1.6 percent in the accumulated of January, closing at 0.6893 dollars a pound. Buyers, enough supplied, kept retreated. They bet on stable or slightly lower prices, since the current levels are getting closer to the import parity.
In the accumulated of January, the Index increased 7.65 percent, averaging 1.4055 real a pound, 5.07 percent higher than the average of Dec/06 (in real terms). This value is equivalent to the average of Nov/04 - last year of high values in the domestic market.
In relation to exports, trades have been moving slowly. For the cotton from 2006/07 crop, the few trades were settled at 0.5764 dollar a pound. For 2007/08 crop season, contracts averaged 0.5863 dollar a pound. And for 2008/09, the values were at 0.5914 dollar a pound.
At the beginning of this year, 57 percent of the 2006/07 crop (764.1 thousand tons) had already traded. Of this total, 74 percent were for export.