Soybean field in the State of Mato Grosso, Brazil

HOME

ABOUT KORY

AGRIBUSINESS

AG TOURS

BLOG

FARM INFO

LAND

MAPS

PHOTOS

PRICES

SECTORS

STATES

WEATHER

SITEMAP

 


 

Cotton Brazil

Ag Sectors

SOYBEANS/CORN

SUgarcane


16 July 10

 

Upward trend weakens

After moving up 8.3 percent in June (due to small stocks and high demand), cotton prices in the domestic market weakened in the second week of July. Industries refrained from purchasing large amounts in order to prevent price rises. Therefore, textile mills rearranged their activities to make use of their own stocks or product received from contracts. As a result, liquidity decreased significantly in that period.

During June 30 to July 15, the CEPEA/ESALQ Index for cotton type 41-4 (delivered in Sao Paulo city, payment in 8 days) rose 1.27 percent and closed at 1.67 Real or 0.9424 dollar per pound on Thursday, Jul. 15.

In general terms, industries reported difficulties to transfer price increases to purchasers of manufactured products and of cotton thread. Most sellers, in turn, kept focused on product quality and harvest yields. First ginned batches should be allocated for the accomplishment of contracts and for contracts involving trades with inputs.

Regarding supply and demand in Brazil, data from Conab (National Company for Food Supply) forecast a slight increase of 0.4 percent of the cotton area of the 2009/10 crop in relation to the previous one, reaching 846.5 thousand hectares. Production should increase 3.9 percent, to 1.26 million hectare.

Data from USDA, released on July 9, forecast an increase of 9.6 percent of the cotton production in the USA compared to the forecast in the report released in June. As a result, production should reach roughly 4 million tons, a significant boost of more than 50 percent in relation to the supply of the 2009/10 crop. For Brazil, the forecast is an increase of 2.9 percent, amounting 1.5 million tons; for Uzbequistan, an increase of 4.3 percent, totaling 1.05 million tons.

All in all, world production of the 2010/11 crop should move up 13.1 percent, reaching 25.3 million tons. Consumption should reach 26.1 million tons and world trades should surpass 8 million tons. As a result, passage stocks should be 10.9 million tons, 2.11 percent less than that observed in the 2008/09 crop.

Regarding exports, in June 18.1 thousand tons of cotton was shipped, volume 93.6 percent higher than that exported in May and 72.6 percent more than that observed in June 2009. In the accumulated of the year, Brazil shipped 135.5 thousand tons, 37.1 percent less in relation to the same period in 2009. In terms of values, shipments in June averaged 0.7593 dollar per pound, hitting a record high, considering all series of Brazilian exports collected since 1996.

(
CEPEA/ESALQ/BRAZIL)


Lula: Brazil won The Arm Wrestling Match over U.S. cotton Subsidies
8 July 10

WTO and cotton decision against the USA
WTO

 

Speaking on Thursday (8) to Brazilian businessmen and Zambians in Lusaka, capital of Zambia, President Luiz Inacio Lula da Silva used the example of arm-twisting between Brazil and the United States because of subsidies from U.S. government for cotton producers. The case illustrated the thesis of the president of that African countries should seek their own solutions, not dictated by rich countries to solve their own problems.

"We won," said Lula. "Now, between us winning and their complying, we had to fix an interim measure with retaliation on American products, so they would see we were not kidding," he said.

The President believes that the victory of Brazil is the fact that last week, the U.S. government has deposited the first tranche of U.S. $ 30 million, from $ 147.3 million each year which shall be credited to the account of the Brazilian Institute of Cotton (IBA).

This compensation fund to finance projects related to Brazilian production of cotton was proposed by the U.S. to avoid retaliation authorized by the World Trade Organization (WTO) in November 2009 because of subsidies granted to producers by the U.S. government.

In all, the retaliation could be up to U.S. $ 830 million, including lifting of import tariffs and intellectual property patents, which can be broken by Brazil. An agreement reached last month between the governments of Brazil and the U.S., however, suspended the start of retaliation by the end of 2012, when the United States must reshape its farm bill to limit spending and subsidies to help reduce the program credit guarantees for export of cotton.

The Cotton "soap opera" began in September 2002 when Brazil asked the WTO to rule against U.S. subsidies given to its cotton farmers, which caused distortion in international trade, harming cotton farmers in Brazil.

Agência Brasil

Author: Luciana Lima


The WTO Cotton Dispute: How the U.S. is trying to Escape International Trade Regulation while Brazil Asserts Itself as a Regional Leader

by COHA Research Associate Felix Blossier - 1 June 2010

While pressuring developing countries to adopt pro-trade measures, the U.S. does not enforce its WTO commitment on cotton subsidies.

By pointing out this problem Brazil asserts itself in the international arena while the voice of African cotton exporting countries is not heard at the WTO.

On April 20th 2010, a Memorandum of Understanding (MoU) was signed between the two largest economies of the Western hemisphere, thus calming a decade-long, sometimes rancorous, dispute involving Washington and Brasilia over the subject of subsidies paid out by the U.S. to its cotton producers. By initiating a U.S.-financed fund, which would be allocated to cotton producers in Brazil and all over the world, this agreement was widely seen as resolving, once and for all, the existing trade tensions between the two countries. But, at the same time, the MoU can be seen in other, less charitable, ways as a token agreement and as a refusal by the U.S. to reform its basic system and to comply with international regulation.


 

marcador

National Cotton Council Overview (old but sill informative)

 


Contact:

Kory Melby

Skype:

Skype Me™!  

Ph:

55 (62) 3286-1506

Email:

CLICK HERE

Privacy Policy:

CLICK HERE

 

site search by freefind

 

 

HOME

ABOUT KORY

AGRIBUSINESS

AG TOURS

BLOG

FARM INFO

LAND

MAPS

PHOTOS

PRICES

SECTORS

STATES

WEATHER

SITEMAP