The cotton market has been presenting a scenario of rising prices in New York, marking what could be the fourth consecutive month of appreciation, according to analyzes by Itaú BBA. However, in the domestic market, the trend is towards a slight accommodation, reducing the pace of increase recorded in the previous month.
According to data from the National Supply Company (Conab), the crops are mostly in the flowering phase (43% of the fields) and starting to form apples (48%). This reflects a crucial stage for the development of the harvest, with expectations of good production.
The latest research carried out by the Brazilian Association of Cotton Producers (Abrapa) indicates that 58% of the 2023/24 harvest has already been sold by the producer. This part of March points to a 2.5% increase in external fiber prices, reaching USDc/lb 94.89. This movement is attributed to the lower availability of American fiber, whose production fell 16% compared to the previous harvest.
Furthermore, the market is paying attention to the recent movements in the value of oil, which saw a partial increase of 1.9% until March 25th. These external factors have influenced cotton prices, which are on an upward trend.
In the national market, specifically in Rondonópolis, there was a 1.4% increase in prices until March 25th, reaching R$4.02/lb. However, even with these recent gains, prices are still 16.4% below those recorded in March 2023.
In the state of Mato Grosso, the climate has been mostly beneficial for the development of the crop in the field, although some periods of rain have limited management work. In Bahia, sowing faced challenges due to climate instability, resulting in 11.5% replanting, as reported by the Bahian Association of Cotton Producers (Abapa). Despite these setbacks, after the establishment of the crops, the plants have shown good development.
Tags: Rising Prices Expectations Harvest
