Brazilian cotton prices climbed in the first fortnight of January 2017, primarily driven by low availability, coming from the failure of the 2015/16 crop and since most production from that crop, was traded in advance. On January 9, Brazilian cotton quotes touched BRL 2.7977 per pound, the highest level, in nominal terms, since May 2, 2011.
However, cotton prices dropped 0.3 per cent in the second fortnight of the month, mainly due to more flexibility on part of sellers and also good liquidity.
The CEPEA/ESALQ Index, 8-day payment terms, for cotton type 41-4, delivered in São Paulo, rose 0.3 per cent in January, closing at BRL 2.7573 or $0.8761 per pound on January 31.
Quoting data of the Brazilian Commodity Exchange (BBM), CEPEA said 74.8 per cent of the 2015/16 Brazilian cotton crop, estimated at 1.288 million tons, had been traded until January 31. Of this total, 52.9 per cent was sold in the local market, while the rest was exported.
The 2016/17 crop has been estimated at 1.4 million tons, 30.1 per cent of which has been traded. Of the traded portion, 34.6 per cent was sold in the domestic market and 65.4 per cent was exported.
Source : http://www.chinatexnet.com