algodão / cotton
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BBM already registering cotton sales for 2023

Jun, 29, 2021 Posted by Ruth Hollard

Week 202127

With the harvest of the 2020/21 crop beginning in Brazil, e-tradings cotton producers are already thinking about the 2023 harvest. The Brazilian Merchandise Exchange (BBM), which trades more than 60% of the national product, has already registered sales of 10.5 thousand tons with delivery in two years.

“Advance negotiations were not so common before, but in recent years, producers began to plan and guarantee a part of the revenue for the purchase of inputs”, said João Paulo Lefèvre, chairman of the Board of BBM and partner of Lefèvre, to Valor Econômico. As a parameter, the forecast for the 2020/21 cotton crop in Brazil is 2.34 million tons, according to CONAB (the national food supply company).

See the DataLiner graph below for a history of Brazilian cotton exports since 2019:

Brazilian Cotton Export (HS 5201) | Jan 2019 to May 2021 | WTMT

Graph source: DataLiner  (To request a DataLiner demo click here)

The negotiation of production with two harvests in advance is not a novelty in the agricultural market, but, in the case of cotton, this suggests that there is a gradual increase among producers in the use of more frequent instruments in other cultures, explains Eduardo Santiago, from the Santiago Cotton brokerage, which has already closed deals for 2023. “Selling production two years ahead has always been a market practice, especially when the price is high”.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/06/29/brasil-registra-vendas-de-algodao-para-2023.ghtml

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