Unenthusiastic purchasing and slow supply of the new cotton crop was cause of driving down cotton prices in the Brazilian market in the second fortnight of June. This despite low availability of good quality cotton.
The ginners of the country were of the opinion that as the harvesting season advances; domestic supply would increase in the first fortnight of July.
However, some agents were also of the view that as activities intensify, growers and trading companies may prioritise closing contracts signed earlier for deliveries to the Brazilian and global markets.
The Center for Advances Studies in Applied Economics (CEPEA) noted that, thus higher supply in the Brazilian spot market may be observed only in August.
The CEPEA further said that a few agents, mainly ginners were active in the spot market while purchasers acquired smaller lots from the 2014/15 and 2015/16 crops to meet immediate demands.