Brazil: Cotton and Products Update
Link to report:
Post forecasts 2020/21 planted cotton area at 1.5 million hectares (ha), with production at 12.06 million bales (2.63 million metric tons – MMT), more than a 13 percent decline from the 2019/20 estimated production of 13.87 million bales (3.02 MMT). Cotton area is forecast to shrink because of dry weather delaying first-season soybean planting, very high priced alternative crops, and the changing dynamics of cotton prices and production costs. Post forecasts that Brazil’s domestic cotton consumption will come in at 3 million bales for 2020/21 (653 thousand MT), as compared to the estimated 2.7 million bales (588 thousand MT) for the current MY. Post revised up the 2020/21 marketing year export forecast by one million bales to 10 million bales (2.18 MMT) - an increase of almost 12 percent on the current season export estimate of 8.9 million bales (1.95 million metric tons).
