The number of active agents in the cotton lint market decreased at the beginning of December, a scenario that has limited internal liquidity. Despite this, prices are relatively firm, still around R$2,60/pound.
According to Cepea employees, with the end-of-year break approaching, sellers are focusing on fulfilling contracts, while others are still processing cotton from the 2018/19 harvest and paying attention to the start of sowing for the next season.
On the purchasing side, some industries are expected to suspend activities soon, only returning at the beginning of January. Furthermore, logistical difficulties also hinder new spot business.
Trading companies, in turn, still negotiate the product for export, further reducing the availability of feathers on the domestic market.
Between November 29th and December 10th, the CEPEA/ESALQ cotton lint indicator, with payment in 8 days, fell slightly by 0,28%, closing at R$ 2,6487/lp on Tuesday, December 10th.
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