Stronger demand and overseas gains support cotton prices in Brazil

Cotton lint prices remain firm in Brazilian markets, supported by stronger buyer activity in the spot market and gains abroad, according to the Center for Advanced Studies in Applied Economics, or Cepea.

On Tuesday, July 28, the Cepea/Esalq cotton indicator stood at R$4.1626 per pound, up 0.96% so far in July.

Cepea said buyers are seeking new purchases to meet immediate needs and rebuild inventories, while sellers remain firm on their asking prices, especially for higher-quality lots.

In this environment, some buyers have shown greater flexibility in negotiations, supporting the recovery in prices.

Cepea researchers said liquidity remains limited by disagreements between buyers and sellers. At the same time, still-moderate sales of manufactured goods are keeping mills cautious about purchases of cotton lint.

Source: Globo Rural

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