Cotton Prices Show A Downward Trend In Brazil

As reported by the advanced research center of applied economy (CEPEA), most of the sellers and buyers only observed the market in early June, due to the June 7th Brazil holy day holiday and the Brazil market showing a downward trend.

Overall, some sellers

More flexible.

The sharp decline in export prices is also given to Brazil.

Exert pressure.

In June, part time (May 31st -6 15) cotton type 41-4 CEPEA / ESALQ index (St Paul City, 8 days' payment delivery) fell by 3.04%, and it closed at 1.4951 Real or 0.7325 US dollars / pound in June 15th.

SECEX (Foreign Trade Secretariat) data show that in May, Brazil

The number has hit a new high month, indicating that Brazil exported 59 thousand tons of cotton in May, an increase of 13.9% over April.

This year's statistics show that the total export volume reaches 185 thousand and 400 tons, compared with 47 thousand and 600 tons exported in the same period in 2011.

Conab data in June 5th showed that the planting area in 2011/12 was 1 million 398 thousand hectares, which was 0.2% lower than that in 2010/11 (1 million 400 thousand hectares).

The yield per unit area may be 1410 kg / ha, a decrease of 0.7% over the previous year.

Output could reach 1 million 970 thousand tons, up 0.5% from last year.

From a global perspective, international

The Advisory Committee predicts that the output will be 27 million 100 thousand tons and the demand is 23 million 100 thousand tons. Therefore, the final inventory may increase to 13 million 300 thousand tons.

In 2012/13, the output could be reduced to 25 million 100 thousand tons, similar to that of 2010/11, with a demand of 23 million 900 thousand tons.

As China has ample stocks, it is expected to reduce imports.