Weakened demand pressures cotton values

A proximity to the end of the year and the focus on fulfilling fixed-term contracts have kept negotiations involving cotton lint on the spot market slow. Of demand side, most companies had already guaranteed receipt of the product for December, according to Cepea employees.

For delivery from January 2021, there are some closures, but end up being limited by the disparity between the prices asked and offered. A supply of lint is also low, but still above demand, which has resulted in price drops.

Between 8 and December 15th, the CEPEA/ESALQ cotton lint indicator, with payment in 8 days, it fell 1,6%, closing at R$ 3,7808/lp this Tuesday, 15th. month, the drop is 5,5%, but even so, the Indicator is above parity exports, which is why trading companies have participated more actively in domestic market.