Brazil: Cotton and Products Update
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Post forecasts Brazil's 2019/20 marketing year (MY) cotton area to reach 1.65 million hectares (ha), an increase of about 2 percent on the current season's estimated area of 1.62 million ha. Post forecasts 2019/20 harvest at 12.67 million bales (2.76 million metric tons). Next season's expansion rates for cotton planted area and production are subdued as compared to explosive growth seen in Brazil's cotton sector in recent past. This forecast is based on the expectation of lower global prices and higher production costs. Exports are forecast to top 8.5 million bales, up from 6 million bales in the 2018/19 season. Domestic consumption is forecast at 3.6 million bales, which is a 3 percent increase compared to the current MY, and is forecast based a moderate economic growth outlook for 2020.
