During the first half of May, cotton prices in Brazil underwent fluctuations, ultimately showing a downward trend by mid-month. Sellers, particularly those looking to clear stocks from the 2022-23 season, displayed flexibility in pricing early in the month. However, prices declined as certain industry players offered lower rates to secure new deals, according to the Centre for Advanced Studies on Applied Economics (CEPEA).
The latest export sales report from the US Department of Agriculture (USDA) reveals a significant uptick in net sales of US Upland cotton for the 2023-24 season, showcasing robust demand in international markets. With net sales totaling 253,700 running bales (RB), each weighing 226.8 kg or 500 pounds, the figures reflect a notable increase from the previous week and the prior four-week average.
The cotton market in the USA continues to exhibit a puzzling trend, with prices trapped within a narrow range despite a surge in export sales. Despite the ongoing movement of U.S. cotton abroad, there has been no discernible improvement in demand, leaving prices stagnant within the six-cent range of 77-83 cents. The persistent lack of demand poses a challenge to market dynamics, raising concerns among industry stakeholders.
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