The official period for the sale of seed cotton in Mozambique began cast week and production this season is expected to total 110,000 tons, an increase of 25,000 tons on the previous season, Mozambican newspaper Notícias reported.
The newspaper added that the sales period this year had been brought forward by 30 days in order to take advantage of prices currently offered on the international market.
Norberto Mahalambe, director of the Mozambican Cotton Institute (IAM) said that as of August international cotton prices would start to fall based on publication of estimates for cotton production in the northern hemisphere, and therefore “if we can place the cotton on the market before August we can take advantage of the high prices before then.”
This year the Mozambican government has set the minimum price for sale of seed cotton at 11.75 meticals per kilo for first-rate cotton and 8.70 metical per kilo for second-rate cotton.
These prices were set following an agreement between the companies that support cotton production in Mozambique, such as Olam Mozambique and the João Ferreira dos Santos (JFS) group. (macauhub/MZ)