Parity & contracts push up cotton prices in Brazil (Brazil)
http://www.texnet.com.cn 2012-08-22 09:14:04 来源:Center for Advanced Studies on Applied Economics (CEPEA) 收藏
Center for Advanced Studies on Applied Economics (CEPEA) reported that cotton prices kept the upward trend in the Brazilian market in early August; however, price highs are atypical for this period of the year. Players were expecting a supply increase during this harvesting period, which would press down quotes. However, price increases in the international market, which increase the export parity, and the allocation of cotton from the new season to the accomplishment of contracts have been raising quotes.
Although export parity is still below domestic prices, producers were limiting batches for trades in the spot market. International prices and the exchange rate have underpinned parity. Cotton growers continued to make cash flow mainly from corn sales, but high prices slowed down the pace of trades for grains in early August.