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After falling for two months, cotton indicator recovers in August

Recovery was linked to the firm position of sellers, who were attentive to the strong appreciation of contracts on the New York Stock Exchange (ICE Futures) and, partially, of export parity

01.09.2022 | 15:06 (UTC -3)

Cepea

Recovery was linked to the firm position of sellers, who were attentive to the strong appreciation of contracts on the New York Stock Exchange (ICE Futures) and, partially, of export parity. - Photo: Wenderson Araujo/CNA

After accumulating declines for two consecutive months, cotton lint prices rose again in Brazil in August, returning to the levels observed at the end of June. According to Cepea researchers, this recovery was linked to the firm position of sellers, who were attentive to the strong appreciation of contracts on the New York Stock Exchange (ICE Futures) and, partially, of export parity.

The low supply in the Brazilian spot, especially of better quality lint, also reinforced the upward movement in prices. It should be noted that processing in Brazil is not even halfway done, and agents are focused on fulfilling fixed-term contracts.

Some buyers interested in acquiring new lots throughout the month increased the values of their offers to attract sellers. However, the disparity between prices and feather quality limited liquidity.

Between August 23rd and 30th, the CEPEA/ESALQ Indicator, with payment in 8 days, advanced 1,45%, closing at R$ 6,7109/lp this Tuesday, 30th. In the partial month, the Indicator accumulates strong increase of 12%.