With a strong external increase, cotton prices rise in Brazil and renew nominal maximum

Domestic cotton lint prices continue to rise and renew the nominal records of the Cepea historical series, started in 1996 for this product. The advance is linked to the firm position of sellers and, above all, the strong appreciation of feather contracts on the New York Stock Exchange (ICE Futures). Between March 22nd and 29th, the CEPEA/ESALQ indicator for cotton lint rose 3,25%, closing at R$ 7,2799/lp on Tuesday, 29th. In the March partial, the increase is 5,72 %.

According to Cepea employees, most industries have used products in stock and/or received raw materials from fixed-term contracts, avoiding purchasing new batches at current price levels. Some companies work with reduced capacity, as there are still difficulties in sales and the transfer of values ​​throughout the textile chain.

Agents indicate that the retail movement is still weakened, given the population's weakened purchasing power. Sellers continue to ask for higher prices, which limits spot liquidity.

In addition to price, quality is also a limiting factor for negotiations, since there are divergences between the quality required by industries and that provided by sellers.