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Cotton prices in Brazil stabilized after a large drop in the previous month

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cotton-2Cotton prices in Brazil stabilized in April 2021 after a large drop the previous month. According to China Textiles, the CEPEA/ESALQ Index moved from a high of 5.22 BRL per pound on March 4 to a low of 4.76 BRL per pound on April 5. According to the Center for Advanced Studies on Applied Economics (CEPEA) in its most recent biweekly report, the Index has been recovering since then. The CEPEA/ESALQ Index increased by 1.05 percent between March 31 and April 15, as foreign prices rose and Brazilian production fell. However, in the first two weeks of the month, these prices began to level down. Given that the sector has not purchased cotton for immediate delivery since early March, some Brazilian businesses expect demand to increase in the coming months, according to the article. However, according to Brazil’s National Food Supply Company (Conab), the overall area under cotton cultivation in Brazil could drop by 15.2 percent to 1.41 million acres in 2020-21, compared to 2019-20. In comparison to the previous season, productivity is predicted to drop by 2.1 percent to 1,764 kilos per hectare. As a result, production is expected to drop 16.9% to 2.49 million tonnes. Cotton inventories in Brazil.

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