Consequently, the demand for artificial fibers has grown, reducing the
demand for cotton yarn. Cotton quotes shrank, but purchases of natural
fibers, such as cotton, did not increase quickly as expected..
In the first three months of 2011, values in both the domestic and
international markets upped, hitting a record in March, despite the low
liquidity. In that time, agents wondered what limit quotes would hit..
Prices moved up sharply until mid-March due to an increase in
consumption, to a reduction in the planted area in important producing
countries in the 2009/10 season and to the shrinking of world stocks..
In the second fortnight of March, quotes were high and led purchasers to
refrain from trading, which pushed down prices in the domestic market..
In April, values dropped by a whopping 24.35%, the highest negative
variation in a month of all Center for Advanced Studies on Applied
Economics – CEPEA data, started in July 1996..
Expectations of a higher world supply pushed down cotton prices until
mid-2011, when weather problems in many regions in the world, including
Brazil, caused uncertainties about the world production. Meanwhile, the
demand became steadier..
At the beginning of the second semester of 2011, the trend of cotton
quotes changed three times in a little more than a month. In the last
three months of the year, the low demand for cotton prevailed in Brazil
and in the world, pressing quotes down..
In the 2010/11 season, the planted area in Brazil upped 67.6%, to 1.4
million hectares, according to National Company for Food Supply. The
yield moved up 2%, to 1,400 kilos per hectare. Therefore, Brazilian
cotton production increased 64%, amounting 1.96 million tons in the
2010/11 crop..
Brazilian shipments may amount to 730,000 tons, representing an increase of 42.4% compared to exports in 2010″table cellpadding=”0″ cellspacing=”0″ width=”100%”>”tbody>”tr>”td>” “/td>”/tr>”/tbody>”/table>