After a significant decline in previous month, cotton prices in Brazil stabilized in April 2021. As per China Textiles reports, the CEPEA/ESALQ Index changed from the record 5.22 BRL per pound on March 4 to 4.76 BRL/pound on April 5. Since then, the Index has been recovering, said the Center for Advanced Studies on Applied Economics (CEPEA) in its latest fortnightly report.

Between March 31 and April 15, the CEPEA/ESALQ Index rose by 1.05 per cent as international prices rose and production in Brazil declined. However, these prices stabilized in the first fortnight of the month. Some Brazilian players expect cotton demand to increase in coming periods, given that the industry has not been purchasing the product for immediate delivery since early March, the report says.

However, Brazil’s National Food Supply Company (Conab) indicates, Brazil total area under cotton cultivation may decline by 15.2 per cent to 1.41 million in 2020-21 compared to 2019-20. Productivity is expected to decline by 2.1 per cent to 1,764 kilos per hectare compared to the previous season. Hence, production is also likely to decline by 16.9 per cent to 2.49 million tonne. Brazil cotton inventories for 2020-21 are forecast to decline by 13.7 per cent to 2.7 million tonne, estimates USDA.