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>
Date:1/5/2012
Source:Egytex.com