Brazil New Cotton Is About To Harvest, Export Quotas Begin To Weaken

With the continuous improvement of the quality of Brazil cotton, the length of 1-5/32 became more common. Brazil cotton began to compete with the United States cotton and exported a lot to the main markets of the United States cotton. The amount of cotton handled by international cotton traders was equal to that of Brazil cotton. With the continuous improvement of quality and stable demand in China, the basis of Brazil cotton quotas remained stable.

However, this year Brazil cotton is expected to re harvest the big harvest will bring new pressure to Brazil cotton sales. It is estimated that Brazil cotton inventory will reach a record high in 2020/21. Brazil has no condition to store cotton for a long time. With the approaching of new cotton harvest in 2020 and the decline of India cotton quotations, Brazil cotton prices began to fall.

In May, the base of Brazil cotton M 1-1/8 was stable at 900-1200 points. Recently, the cotton base in Brazil began to weaken. Last week's base fell 200-300 points compared with the previous week, about 200 points lower than the US cotton. Brazil M 1-1/8 new cotton quoted price base is 1000-1100 points (December contract), SLM 1-1/8's base difference is 900-975 points.