Brazilian cotton exports may rise 42.4% in 2011

In early 2011, sellers were optimistic regarding cotton prices and, in March, quotes hit record levels in both domestic and international markets. This led to an increase in the planted area and global supply moved up. The demand, however, has not followed the same pace. Cotton was traded at record values, so, purchasers were looking for cheaper alternatives.

Consequently, the demand for artificial fibers has grown, reducing the demand for cotton yarn. Cotton quotes shrank, but purchases of natural fibers, such as cotton, did not increase quickly as expected.

In the first three months of 2011, values in both the domestic and international markets upped, hitting a record in March, despite the low liquidity. In that time, agents wondered what limit quotes would hit.

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