- Brazil’s cotton market saw low liquidity in August, even as the harvest season nears completion, according to a report from the CEPEA.
- The CEPEA/ESALQ Index indicated a 2.5 per cent price increase, settling at BRL 4.0475 per pound at the end of August.
- Market participants were focused on fulfilling existing contracts, leading to limited new transactions.
Despite nearing the end of cotton harvest, liquidity remained low in Brazil’s national spot market in August, according to a report from the Center for Advanced Studies on Applied Economics (CEPEA). Around one-third of the cotton output has been processed, yet agents have been primarily concerned with fulfilling pre-existing contracts.
CEPEA’s collaborators have indicated that there were disagreements between buyers and sellers regarding both the price and quality of cotton batches available. In the month spanning from July 31 to August 31, the CEPEA/ESALQ Index for cotton rose by 2.5 per cent, reaching BRL 4.0475 per pound as of August 31, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
According to ABRAPA, the Brazilian Association of Cotton Producers, 76 per cent of the Brazilian 2022-23 cotton crop had been harvested by August 25, and 31 per cent of the output had been processed.