According to a CEPEA report, Brazilian cotton prices were predominantly increasing and recovering in 2015 from a significant decrease in 2014 and in the first quarter of 2015. “What was driving this increase were the decrease in the Brazilian 2014/15 crop and higher exports parity,” it explained. International sales were favoured by the significant increase of 50.7 per cent in the export parity in 2015, underpinned by the strong dollar valuation against the Real. “Besides, many exports contracts were closed even before the harvest of the 2014/15 season and the annual average of the Index was only 4.7 per cent higher than export parity in 2015 as against 14.5 per cent difference in 2014. Quoting statistics from the Foreign Trade Secretariat (SECEX), CEPEA said Brazilian cotton exports in 2015 were 7.08 per cent year over year higher at 684,000 tons. The revenue from these exports was $1.174 billion or Real 3.543 billion, 9.45 per cent down in dollar terms but 28.3 per cent up in Real terms. However, Brazilian cotton imports decreased 93.22 per cent in 2015 and amounted to just 2,000 tons. Data from Brazilian Commodity Exchange until December 23, 2015, revealed that 56.4 per cent of the 2014/15 crop, forecasted at 1.56 million tons, had already been traded until December 18. “From this total, 41.5 per cent were destined to the domestic market and 58.5 per cent, to the international market,” CEPEA informed. While for the 2015/16 crop, forecasted at around 1.53 million tons, 27.8 per cent was traded till December 18.
