Brazilian cotton prices kept stable in the first fortnight of November. On Nov 14th, the CEPEA/ESALQ Index for the type 41-4 (delivered in Sao Paulo city) closed at 1.1921 real or 0.6891 dollar per pound.
Some growers traded the inferior types (from 2006/07 crop) at lower prices. It is important to note that in previous years this used to happen at the end of the off-season period and not in two or three months after harvest activities. At the same time, growers remained firm about the values of the cotton of better quality, which supported the Index average.
According to the Brazilian Commodity Exchange, until Nov 1st, 1.16 million tons of the cotton from the 2006/07 crop were already traded, which represents 76 percent of the total Brazilian production forecasted by the National Company for Food Supply (Conab), at 1.52 million tons. From this total, 548 thousand tons are destined to the domestic market and 614 thousand tons, to the international one.
Regarding the 2007/08 crop, the planting should be intensified from the second fortnight of November on. For a while, 758 thousand tons of the cotton from this crop were already settled, representing 47 percent of the total production estimated by the Conab (1.62 million tons).