Cotton prices have stabilized in Brazil after falling sharply in the past month

Cotton prices stabilized in Brazil in April 2021 after a sharp decline last month. According to China Textiles, the CEPEA / ISALQ index rose from a high of 5.22 BRL per pound on April 5 to 4.76 BRL per pound on April 5. According to a recent two-week report, the index has been recovering ever since. The CEPEA / ISALQ index rose 1.05% between March 31 and April 15 after rising foreign prices and declining Brazilian output. However, in the first two weeks of the month, these prices began to fall. According to the article, the sector has not purchased cotton for immediate delivery since the beginning of March.

According to this article, some Brazilian businesses are expecting demand to increase in the coming months. However, according to the Brazilian National Food Supply Company (CONB), the total area under cotton cultivation in Brazil could decrease by 15.2% in 2020-21 compared to 2019-20 to 1.41 million acres. Compared to the previous season, production is projected to decline by 2.1% to 1,764 kg per hectare. As a result, production will fall by 16.9% to 2.49 million tonnes. Lists of cotton in Brazil.