In early June, Brazilian agents continued to prioritize shipping previously signed cotton contracts to both foreign and domestic markets. This situation is related to attractive export prices, which keeps cotton shipments strong.
During the period of June 3-10, the CEPEA/ESALQ cotton index rose 0.5% and closed at 3.9477 Real on June 10, an increase of 1.16%.
According to Secex data, Brazil has exported 503400 tons of cotton to foreign markets in the first five working days of June, approaching the full month export volume of June 2023 (60300 tons). At present, the daily average export volume is 1.007 million tons, far higher than the 0.287 million tons (250.5%) in June 2023. If this performance continues until the end of June, the shipment volume may reach 200000 tons, setting a record high for June exports.
In terms of price, the average export price of cotton in June was 0.8580 US dollars per pound, a decrease of 3.2% month on month (May: 0.8866 US dollars per pound), but an increase of 0.2% year-on-year (the same period last year: 0.8566 US dollars per pound).
The effective export price is 16.2% higher than the actual price in the domestic market.
In the international market, Cepea calculations show that during the period of June 3-10, the export parity of cotton under FAS (Free Alongside Ship) conditions decreased by 0.21%. As of June 10, Santos Port reported 3.9396 reais/pound (0.7357 US dollars), while Paranaguaba reported 3.9502 reais/pound (0.7377 US dollars).
Post time: Jun-20-2024