Cotton prices fall for the second consecutive month, informs Cepea | Cotton

Domestic cotton lint prices fell in April for the second consecutive month. On Tuesday (30/4), the Cepea/Esalq indicator had an average price of R$ 3.9235 per pound, a drop of 4.06% in the month.

According to researchers from the Center for Advanced Studies in Applied Economics (Cepea) at Esalq/USP, the declines are due to greater flexibility on the part of sellers who, in turn, remain alert to strong external devaluations, transit stock and the expectation of another harvest with good production.

Furthermore, some industries even offer even lower values ​​for new spot acquisitions, reinforcing the pressure on internal prices.

The losses are not greater because another group of sellers is firm in their positions, while other buyers also pay more for superior quality feathers.

Cepea’s survey also shows that some lots from the new season are already starting to be traded on the spot, especially from São Paulo.