Drop of The CEPEA/ESALQ Index Observed for 15 Business Days Were Halted in Late April

Drop of the CEPEA/ESALQ Index observed for 15 business days were halted in late April; however, the lowest import and export parities, because of international price decreases, may press down quotes. Between April 3 and 24, 2013, the CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo City, 8-day payment) decreased 7.8%.
 
At the end of April, cotton dealers were willing to trade the volume in stocks, purchased in previous periods. Purchasers, however, buy only to the meet the short-term demand. In general, liquidity continued low in late April.
 
Given the nearness of the supply from the new crop and decreases of import and export parities, cotton growers were starting to show interest to trade in an attempt to take advantage of current price levels.
 
The possibility to import 80 thousand tons of cotton without TEC (Common External Tariff) leads the industry to search for international operations.