Brazil: Conjunctural agricultural analysis of cotton in April/22 Cepea/Esalq/USP

Published 2022년 5월 10일

Tridge summary

In April, the rise in international prices, appreciation of the dollar against the Real, and increase in export parity led to a significant increase in cotton lint prices in Brazil. The CEPEA/ESALQ Indicator for cotton lint with payment in 8 days rose 1.71%, reaching a record high, as some factories are operating at reduced capacity or considering collective vacations due to the higher prices. Meanwhile, the cottonseed market continued to experience low liquidity, with buyers and sellers waiting for the next crop to arrive. The United States Department of Agriculture also expects a decrease in global cotton imports and exports due to the conflict in Ukraine, which may further affect global cotton consumption.

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Original content

COTTON Pixabay.jpg The rise in international prices, the appreciation of the dollar against the Real and the increase in the export parity made cotton lint prices rise in Brazil in April. Aware of this external scenario, sellers were firmer and/or increased the amounts requested for the lots available in the spot, especially for the higher quality lint. Thus, the price increased more strongly at the end of the month, reaching the point of renewing, for a few consecutive days, the nominal maximum of the Cepea historical series, which began in 1996. In the accumulated result for April, the CEPEA/ESALQ Indicator for cotton lint with payment in 8 days, it rose 1.71%. The April/22 average, of R$ 7.2063/lp, was 11.7% above the export parity and remains the highest in the Cepea series, in nominal terms. In real terms (IGP-DI – March/22), the average is the highest since April 2011 (R$ 8.9282/lp), being also 2.3% higher than in March/22 and 29, 11% higher than that of April/21. In dollar ...

Source: Brasilagro