Domestic cotton prices reacted again at the beginning of July

Domestic cotton prices reacted again at the beginning of July. According to Cepea researchers, the support comes from the restriction of sellers, who, at the beginning of the harvest, are uncertain about the productivity and quality of the lint. Furthermore, many producers have already committed good volumes through forward contracts, limiting supply in the spot.

Cepea researchers emphasize that the positive variations were not more intense due to buyers' resistance to paying higher amounts and the greater supply of trading companies to the domestic market, considering that domestic sales pay more than exports. In the accumulated result for July, the CEPEA/ESALQ Indicator, with payment in 8 days, rose 3,68%, closing at R$ 4,8639/lp on Tuesday, the 6th.