Cotton trading in Brazil gained momentum in mid-November, driven by firm demand. Buyers actively sought new batches to meet year-end needs and replenish inventories. However, many offered lower prices than those sought by sellers, keeping average quotations at subdued levels, as per the Centre for Advanced Studies on Applied Economics (CEPEA).
Despite the uptick in activity, most sellers maintained a focus on fulfilling term contracts for both domestic and international markets. According to the Brazilian Cotton Producers Association (ABRAPA), 77.2 per cent of Brazil's cotton production had been processed by November 7. This progress allowed well-capitalised producers to hold out for improved trading conditions before selling their stocks, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
Between October 31 and November 18, the CEPEA/ESALQ Cotton Index (8-day payment) saw a slight decrease of 0.66 per cent, closing at BRL 3.9077 (~$0.68) per pound on November 18.
