Feather price drops 5,5% in July

After the significant drop of 22% in June/22, the price of cotton lint fell less intensely in July. As for negotiations, they remained at a slow pace during the month.

According to Cepea employees, with the progress of harvesting, processing and batch classification, producers continued to prioritize compliance with term contracts to the detriment of spot business, influenced by uncertainties regarding the productivity of the 2021/22 harvest in some regions. These agents withdrew from the market because the majority of contracts were carried out above the values ​​practiced in the national spot.

On the purchasing side, part of the industries are out of the market, preferring to make use of stock and/or contracted raw materials, since some factories are still working with reduced capacity and/or having difficulty selling some manufactured products.

In the accumulated result for July (from June 30th to July 29th), the CEPEA/ESALQ Indicator, with payment in 8 days, fell 5,55%. The price in Brazil was, on average, 2,2% lower than export parity in July.

The July average of R$6,0465/lp was 18,32% lower than last month, but still 10,75% higher than the average from a year ago (the values ​​were deflated by the IGP-DI of June/22 ).