Industrial Cluster: Brazil'S Cotton Output Reached A Record High This Year

The Commissioner of the United States Department of Agriculture (USDA) said in a report that Brazil's cotton area is expected to grow by 13% to 1.87 million hectares in 2024/25 year on year.

The commissioner predicted that under the background of substantial increase in area, the cotton output would reach a record 15.4 million bales (3.3 million tons). Compared with corn, cotton has better price and profitability, leading to area expansion.

However, considering the potential adverse effects of El Ni ñ o year, compared with 2023/24, the unit yield is expected to decline by nearly 9%.

The commissioner predicted that due to the increase of global initial inventory and the intensification of the competition of American cotton, the export of cotton in 2024/25 would be 10.5 million bales (2.3 million tons), down 5% from 11 million bales (2.4 million tons) in 2023/24.

Brazil's cotton consumption is expected to be 3.5 million bales (760000 tons), stable compared with the estimated 3.5 million bales (750000 tons) in 2023/24. Due to the increase in output and decrease in exports, Brazil's cotton inventory at the end of 2024/25 was 7.6 million bales (1.7 million tons).