Holidays in Brazil and in the United States in late November reduced the pace of trades in the domestic cotton market.
Cotton producers were keeping the product in stock,in order to sell only in the off-season period,expecting price increases.
Only some producers,in need of cash flow,were willing to trade in the period,but they were firm regarding asking prices.
Processors,in turn,need to buy high-quality cotton to rebound inventories before collective vacations in December.
Some agents,however,have closed new contracts for future delivery.Purchasers in urgent need of the product had to pay higher quotes.
According to agents surveyed by Cepea,the supply of high-quality cotton was low in late November,which hindered trades.
In November,the CEPEA/ESALQ Index for cotton type 41-4 decreased only 0.03%and closed at 1.5669 real or 0.7366 dollar per pound on Nov.30.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=118646
