The international market gained new momentum in the week that passed with China's reopening to the world, after years of border closures and internal restrictions. The news is seen as a hope for a new boost in the economy and consumption.

The information is from the Abrapa Market Intelligence Bulletin, released on Friday (20)

Check out the highlights brought by the Abrapa Market Intelligence Bulletin:

Cotton in NY 1 – The Mar/23 contract closed yesterday at 83.39 U$c/lp (+1.65%).

Cotton in NY 2 – Reference for the 2022/23 crop, the Dec/23 contract was quoted at 82.32 U$c/lp (+2.8%) and Dec/24 at 78.96 (+3.22%) for the 2023/24 crop.

Prices (19/01), Brazilian cotton was quoted at 100.00 U$c/lp (+50 pts) for shipment in Jan/Feb-23 (Middling 1-1/8" (31-3-36) post Asia, source Cotlook). For shipment in Oct-Nov/23 the price reference also closed at 101.75 U$c/lp (+175 pts).

Highistas 1 – China's reopening to the world, after years of border closures and internal restrictions, is bringing market cheer with the hope of a new boost in the economy and consumption.

Altistas 2 – The falling U.S. dollar against a basket of currencies has contributed to an increase in buyer interest. The currency has dropped more than 10% in the last 4 months.

Highs 3 – Analysts believe the U.S. Central Bank (Fed) can slow the pace of interest rate increases (increasing the rate by 0.25 percent) at the next meeting on Jan. 31 and Feb. 1. With that, the dollar loses more strength.

Altistas 4 – Lower dollar cheapens cotton at destination, increases demand and still supports increased commodity prices.

Bassists 1 – If the Fed, on the other hand, remains conservative and increases the U.S. interest rate 0.5%, the result in commodities tends to be negative.

Bassists 2 – Low dollar reserves in some countries such as Bangladesh and Pakistan have made it difficult for buyers of these countries to open letters of credit.

Bassists 3 – Analysts believe that the number of global cotton consumption in 2022/23 is expected to be closer to the 23 mi/tons projected by ICAC than the 24.1 mi/tons projected by the USDA in this month's report.

China 1 – The speech of China's deputy prime minister, Liu He, at the World Economic Forum in Davos on Tuesday (17) cheered the markets. Liu said the country is open to the world and confident that the economy will return to the normal growth trend in 2023 and expects a significant increase in imports, investments and consumption.

China 2 – On the other hand, the world is closely following the migration of hundreds of millions of people who are moving to celebrate Chinese New Year. The move takes place for the first time since 2019 and could spread the Covid-19 across the country.

Egypt 1 – After years of negotiation, Egypt has defined phytosanitary requirements to release imports of the Brazilian plume. The Egyptian textile industry currently imports about 120,000 tons per year.

Egypt 2 – The sanitary requirements made by the Egyptian government are common for the Brazilian market, as a certificate of control of the cotton beak and proof of waste treatment during production.

Egypt 3 – Abrapa President Alexandre Schenkel says Brazil is able to meet the volume needed for Egypt. And it highlights the quality and transparency in the production of Brazilian cotton.

Pakistan – The country's shortage of foreign exchange reserves has caused a buildup of containers that have been resoused in the port of Karachi. The currency crisis is making it difficult to open letters of credit for cotton because the government is prioritizing food, medical supplies and other items.

Brazil – Exports – According to data from the Ministry of Development, Industry, Trade and Services, Brazil exported 77,100 tons of cotton by the second week january/23. The average daily boarding was 18.8% lower when compared to January/22.

Brazil - Beneficiamento 2021/22 - Until yesterday (19/01): The states BA, GO, MG, MS, PI, PR and SP already end the benefit. There is still cotton to be benefited in MT (1%) and MA (19%).

Brazil - Seeding 2022/23 - Until yesterday (19/01): BA (81%); GO (80.38%); MA (73%), MG (83%), MS (96%); MT (25%); PI (100%); PR (100%), SP (86%). Total Brazil: 41% sowed.

Source: Canal Rural