The price of cottonseed available in Mato Grosso registered a drop of 1.02% last week, closing at an average of R$ 616.41 per ton. This reduction in price is a reflection of the increase in supply of product in the domestic market, resulting from the advancement of the processing of the 2023/24 harvest in the state. The greater availability of cottonseed put downward pressure on prices, since the excess supply usually causes adjustments in market values, as indicated by the weekly analysis of the Mato Grosso Institute of Agricultural Economics (Imea).
According to the analysis, in the same downward trend, the price of cottonseed meal also showed a depreciation, falling 0.61% compared to the previous week. As a result, the price of cottonseed meal stood at R$ 713.75 per ton. This downward trend reflects the seasonal behavior expected during the harvest and processing period, when there is a greater entry of product into the market.
Contrast in the cotton market
According to Imea, while cottonseed and cake are devaluing, cottonseed oil is following an opposite trajectory. Last week, the price of cottonseed oil in Mato Grosso rose 0.70%, reaching R$4,122.86 per ton. The increase was driven mainly by increased consumption from biodiesel industries, which have been using cottonseed oil as a raw material in their production processes.
During this harvest period, a downward trend in the prices of cotton-based products, such as seed and cake, is commonly observed. However, the movement of demand, both domestically and abroad, will be a key factor in determining price variations in the coming weeks. It is observed that, depending on market conditions, the price may adjust again, especially if there is a large increase in demand or a reduction in the supply of the available product, according to data from the weekly analysis.
Source: Seane Lennon | agrolink
