Larger supply presses down prices in Brazil

In the accumulated of this month, Brazilian cotton prices have decreased 6.38 percent, moving back to 0.56 dollar per pound. The pressure comes from the larger supply, as the harvest moves ahead. Besides that, some growers have been trading to raise cash, and the demand keeps weak.

Exports, on the other hand, move at a better pace. Players are more willing to trade for futures seasons, due to the increasing futures in the New York Board of Trade (Nybot). Trades average 0.5688 dollar a pound for the cotton from the 2007/06 crop production, delivery from August/07 to October/07. For 2007/08, the contracts average 0.5739 dollar a pound, delivery between August/08 and October/08.


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