The latest report from the U.S. Agricultural Counselor stated that Brazil’s cotton planting area in 2021/22 will be 1.45 million hectares, higher than this year’s 1.37 million hectares but lower than the previous forecast.
According to the report, Brazilian cotton production in 2021/22 is expected to be 12.3 million bales, higher than the 11.3 million bales in 2020/21, an increase of more than 10%, and the output is lower than the previous The reason is forecast to be dry weather. Yield is expected to be 1847 kg/ha, up from 1794 kg/ha in the previous season.
Brazilian cotton exports in 2021/22 are expected to reach a new high, reaching 11.1 million bales, higher than this year’s 11 million bales. Exports continue to be supported by the depreciation of the real. In 2020/21, Brazilian cotton exports increased by more than 20% year-on-year. In recent years, China has accounted for about 30% of Brazil’s cotton exports, and exports to China in 2020/21 exceeded 700,000 tons, a year-on-year increase of 20%.
After rapid expansion in recent years, Brazil’s cotton planting area has stabilized. Although Brazilian cotton farmers have benefited from the rise in cotton prices, the sharp increase in production costs has limited the profits of cotton planting. However, the current cotton price is still very attractive. The rise in international cotton prices and the depreciation of the real have caused Brazil’s domestic cotton prices to rise by more than 20% year-on-year. 10%, so cotton farmers’ willingness to plant is still high.
In 2020/21, Brazil’s cotton production was 11.3 million bales, including 9 million bales in Mato Grosso and 2.3 million bales in Bahia. According to the forecast of the Brazilian Cotton Growers Association, as of August 26, Brazil’s cotton harvest reached 78%, and the processing progress was 26%. The processing progress in Mato Grosso and Bahia is 18% and 40% respectively. </p
