International cotton prices fall Brazilian cotton prices are still rising

In July, the price of cotton in the Brazilian market continued to rise in the context of the decline in cotton prices in the international market. In Brazil, the relevant industrial sector usually only purchases immediate consumption, and recently, low-quality seasonal cotton continues to push up cotton prices.

Those processing companies with stocks and contracts had little intention of buying in early July. Allegedly, they will only make new purchases when the cotton harvest is large or necessary. Conversely, buyers are stable in terms of quotations. These institutions focus on the harvesting, rolling and completion of cotton contracts. Only a small number of manufacturers are operating and transactions have risen or declined. In most cases, cotton prices are higher than the index of the day. This can be explained by harvesting low quality products.

In many areas, rainfall and pests affect cotton production, causing vendors to give priority to completing contracts until production can be ensured. As of the second week of July, cotton production and quality in the Bahia region in the west were below average.

In the first two weeks of July, the CEPEA/ESALQ index of the 41-4 category of cotton rose by 3.85% and it was close to 2.1496 lire/lb on July 15.