Cotton prizes in Brazil dipped in January despite being outside the harvest season, according to a report by the Center for Advanced Studies on Applied Economics (CEPEA).
A few of the key factors that drove this decline included, the reentry of industry players into the market with low prices, discounts offered by some sellers to gain quick cash., premiums paid by buyers with immediate needs despite overall downturn and focus on exports by companies due to rising international prices and strong demand.
From December 28, 2023, to January 31, 2024, the CEPEA/ESALQ Index for cotton decreased by 0.32 per cent, settling at BRL 3.9874 per pound on January 31, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
According to data released by the Instituto Mato-grossense de Economia Agropecuária's (IMEA) on January 22, 81.53 per cent of the 2022-23 season's cotton had been traded in Mato Grosso, Brazil's largest producer.
As per data by the Secretariat of Foreign Trade at the Ministry of Economy (SECEX), Brazil’s cotton exports incrased by 93.9 per cent to 240.4000 tons in January 2024 compared to January 2023, the third-highest volume shipped in the month.