Global Economy: Brazil Exported 72624.02 Tons Of Cotton In July

 

Brazil's cotton prices rose for most of July, but at the beginning of July prices hit the lowest level since mid October 2010. The monthly average price is still the lowest level in the past three years - the domestic price is even lower than the export parity price, which is not common. Therefore, affected by the rise in foreign cotton prices, the sellers were unwilling to lower their prices, which led to the partial recovery of Brazilian prices.

Traders have been restocking and/or buying when needed. As for international sales, in addition to the increase in shipments, the export price was higher than the domestic price in some periods in July, which led the seller to complete the transactions of the remaining batches in 22/23, 23/24 and 21/22 years. Trading company agents buy cotton in the Brazilian market, which helps to increase demand - in most cases, trading companies pay higher prices than national buyers bid.

From June 30 to July 31, the CEPEA/ESALQ cotton index rose 9.73% to R $3.9484/lb. This is the highest monthly increase since August 2022 (12.08%). In the past seven days, the cotton index rose 1.89%, and the domestic price was 2% lower than the export price.

In July, the average price of Brazilian cotton closed at R $3.8090 per pound, down 3.55% from the previous month and 32.19% from the same period last year, which is the lowest level since July 2020 when the average price of cotton was R $3.7302 per pound.

According to the export data released by Secex, Brazil exported 72624.02 tons of cotton in July, with an average daily export of 3458.29 tons, up 268.98% from 937.25 tons in July last year. Last July, Brazil exported 19682.24 tons of cotton.