Cotton Production In Brazil Is Expected To Increase By 10%

According to the latest report of the U.S. Department of agriculture, the cotton planting area in Brazil in 2021 / 2022 is 1.45 million hectares, higher than the 1.37 million hectares this year, but lower than the previous forecast.

According to the report, Brazil's cotton production in 2021 / 2022 is expected to be 12.3 million bales, higher than 11.3 million bales in 2020 / 2021, with an increase of more than 10%, which is lower than the previous forecast due to the drought weather. The yield is expected to be 1847 kg / ha, up from 1794 kg / HA in the previous year.

Brazil's cotton exports in 2021 / 2022 are expected to reach a record high of 11.1 million bales, up from 11 million bales this year. In 2020 / 2021, Brazil's cotton exports increased by more than 20% year-on-year. In recent years, China accounts for about 30% of Brazil's cotton exports, and exports to China in 2020 / 2021 exceed 700000 tons, an increase of 20% year-on-year.

After rapid expansion in recent years, the cotton planting area in Brazil tends to be stable. Although Brazilian cotton farmers have benefited from the rise in cotton prices, the sharp rise in production costs has limited the profits of cotton planting. However, the current cotton price is still very attractive. The rise of international cotton price and the depreciation of real make Brazil's domestic cotton price rise by more than 10% over the same period of last year. Therefore, cotton farmers' willingness to plant is still very high.

(source: China Textile News)