Product Specification:  cotton type 41-4 – color strict low middling (former type 6, fiber 30/32 mm, without characteristic);
Unit of measurement/currency:  pound (0.453597 kg); released in cents of Real or cents of dollar per pound - It is a simple conversion of the value in Real to dollars – commercial exchange rate, asking price at 4:30 p.m. (Brasilia time);
Delivery: product delivered at the processor in São Paulo city;
Region of reference:

trades in the main cotton producing and consuming regions in Brazil;

Weighting base of regions:  arithmetic average of the collected trades;
Statistical treatment: the Index is calculated based on the sample data between two standard-deviations up or down compared to the sample average and on the analysis of the coefficient of variation; 
Discount Rate:

Term prices are converted into cash prices and prices for payment in 8, 15 and 30 days by discounting the CDI (Interbank Deposit Rate). 

Taxes The incidence of PIS/COFINS, CESSR (2.3% referring to the former Funrural) and the commission will depend on the agents involved in the transition (juridical or individual). In addition, there is an increase of freight for delivery in São Paulo city. ICSM is not considered;
Frequency daily;
Historic: since July 1996;
Agents consulted for the survey:

cotton growers, cotton processors, cooperatives, brokers, traders and textile industries; 

Important: Values refer to trades in the spot market, for prompt-delivery

Other Cepea surveys for the cotton market:

  • Freight between main origins and destinations and, especially, from approximately 15 regions to processors in São Paulo city;
  • Weighted averages of trades;
  • Registers of anticipated contracts trades for the Brazilian and international markets;
  • Price in major producing regions;
  • Exports parity of cotton through Santos and Paranaguá ports;
  • Weekly average quotes of cottonseed in major producing regions;
  • Surveys of imports and exports of textile products.

For further information, please check the complete methodology (in Portuguese).

Source: Cepea




Joaquim Bento de Souza Ferreira Filho, Ph.D 
Professor of the Department of Economics, Management and Sociology

Chief Researcher
Lucilio Rogerio Aparecido Alves, Dr.

Research Assistant

Ana Luisa Corrêa

Jéssica Caroline Pereira