The price of cotton continues in an uptrend this month, according to the indicator from the Center for Advanced Studies in Applied Economics (Cepea), and accumulates an appreciation of 6.57% up until Tuesday (5/10), increasingly closer to BRL 8 per pound-weight. Cepea´s analysts also draw attention to the drop in cotton supply – especially in quality – in the 2020/21 harvest, which increases competitiveness for this product line and drives the price.
On the 10th, the reference based in the state of São Paulo closed at BRL 7.8677 per pound-weight. The respondents attribute the movement to a firmer attitude of the sellers, attentive to international plume prices and the exchange rate in Brazil.
In Mato Grosso, the cotton market is experiencing a similar movement, according to Instituto de Economia Agropecuária do Estado (Imea). Heated demand and the rise in international quotes referenced on the New York Stock Exchange raised parities lead to a rise in prices. Last week alone, Imea´s indicator rose 4.77%, to BRL 244.42 for half a bushel.
