However, prices dropped during some periods of the month due to some sellers being more flexible with pricing, as they were attempting to sell off batches of the 2022-23 crop and/or generate short-term cash.

The monthly average of the Index (BRL 4.0793/pound; ~$0.71/pound) surpassed the figure registered in June 2024 by 3.76 per cent and that in July 2023 by 3.1 per cent, in real terms (IGP-DI June 2024). Moreover, it was the highest since March 2024 (BRL 4.3019/pound; ~$0.75/pound), also in real terms. Between June 28 and July 31, the CEPEA/ESALQ cotton Index (payment in 8 days) increased by 2.67 per cent, closing at BRL 4.0757 per pound (~$0.71/pound) on July 31, CEPEA said in its latest fortnightly report on the Brazilian cotton market.

CEPEA calculations show that the export parities FAS (Free Alongside Ship) dropped by 6.6 per cent from June 28 to July 29, to BRL 3.8782/pound (~$0.6890/pound) at the port of Santos (SP) and BRL 3.8887/pound (~$0.6908/pound) at the port of Paranaguá (PR) on July 29. The Cotlook A Index (product delivered in the Far East) decreased by 7.2 per cent in the same period, to $0.7930/pound on July 29.

Data from ABRAPA (Brazilian Cotton Producers Association) indicate that 28.39 per cent of the 2023-24 cotton area in Brazil had been harvested as of July 25, and 9.96 per cent of the production had been processed.

Fibre2Fashion News Desk (KD)