Late January lifts Brazil cotton prices as sellers hold firm

Brazil’s domestic cotton prices have strengthened in late January as buyers showed greater willingness to trade while sellers held firm on quotations. This dynamic pushed spot market deals above export parity levels, even as international cotton prices softened and the US dollar weakened against the real, , as per the Centre for Advanced Studies on Applied Economics (CEPEA).

Brazil’s domestic cotton prices have firmed in late January as buyers accepted higher offers and sellers held quotations, lifting spot deals above export parity despite weaker global prices and a softer US dollar.
Liquidity stayed thin as farmers focused on cotton planting and soy harvesting.
For the month, the CEPEA/ESALQ Index eased 0.31 per cent, while FAS export parity fell 2.59 per cent.

At the same time, overall market liquidity remained subdued, as producers prioritised field activities, particularly cotton planting and soy harvesting. Trading volumes stayed thin toward the end of the month, reflecting a cautious approach from both sides of the market, the CEPEA said in its latest fortnightly report on the Brazilian cotton market.

On a monthly basis, however, prices edged slightly lower. The CEPEA/ESALQ Index (payment in eight days) slipped 0.31 per cent between December 30 and January 30, closing at BRL 3.4754 per pound.

Export parity values declined more sharply, with Free Alongside Ship (FAS) prices falling 2.59 per cent between January 19–26 to BRL 3.3872/pound ($0.6414/pound) at the port of Santos and BRL 3.3977/pound ($0.6434/pound) at Paranagua, reflecting weaker international benchmarks and a softer US dollar.

Fibre2Fashion News Desk (HU)