Brazil: Cotton and Products Update
Link to report:
Post forecasts 2020/21 cotton area planted at 1.5 million hectares (ha), down 10 percent from the current harvest. Post’s forecast is mostly based on the tepid outlook for global consumption, and consequently low prices. In addition, the majority of cotton growers in Brazil have profitable alternative crops, such as soybeans or corn. The Post forecast for 2020/21 cotton production is 12.1 million bales. For the 2019/20 season, Post estimates area harvested at 1.69 million ha, and production at 13.4 million bales, with output higher than initially envisioned due to favorable weather. While domestic consumption is expected to plummet amid the hard-hitting coronavirus pandemic, exports will remain strong. Post forecasts 2020/21 MY exports at 9 million bales, nearly level when compared to the current season export estimate of 8.9 million bales. Exports are buffered by weak domestic currency, making Brazilian commodities more competitive internationally.
