Brazilian cotton prices dropped during February while the downtrend was more intense in the last week of the month. Prices were pushed down due to higher supply and weak demand and as trading companies were quoting prices lower than those asked by cotton farmers.
Even though some producers remained firm in asking prices, others were waiting for prices to increase.
Cotton brokers and merchant were active, but the gap between asking and quoted prices hampered new trades, especially for the second fortnight of the month.
This in turn led to textile mills purchasing in small batches.
The monthly average was 1.66 per cent lower than in January 2016 but still 37.2 per cent higher than in February 2015.
Brazil is one of the world’s leading cotton producers. Thanks to various economic and technological interventions – such as targeted government support, the emergence of new cotton producing regions, and precision farming technologies – Brazil’s cotton production is thriving. The country is one of the world’s largest consumers of cotton fiber as well.
In Brazil, cotton is sown from February to March and harvested from September to December.
Farmers in Brazil have taken the lead in development and conservation of soil. For them conservation of soil is a long drawn system and not a one-time application.