Although Cotton Production Decreased In Brazil, Exports Increased By 30% Over The Same Period Last Year.

Recently, the American agricultural counsellor in Brazil released an analysis report on cotton production and marketing in Brazil.

According to the report, Brazil's cotton planting area is 1 million hectares this year and its output is 1 million 500 thousand tons.

The main reason for the reduction is the fall in domestic and international cotton prices in Brazil. Farmers use cotton as the second crop after soybean.

In view of the rapid export progress of Brazil cotton after August and the expectation of rial's depreciation, it is estimated that the export volume of Brazil cotton will increase to 653 thousand tons this year.

this year

The planting area will be reduced by 11% compared with the same period last year, and the output of cotton will be 1 million 500 thousand tons, a decrease of 12% compared with the same period last year.

From the end of September to October, unstable rainfall in Mato Grosso State, the main cotton producing area in Brazil, delayed soybean planting and affected cotton planting time.

The cotton produced in Mato Grosso State is estimated to account for 57% of the total cotton output in Brazil. If farmers first choose cotton, then the planting time is December, and if it is second, it will be postponed to February 2015.

Due to the delayed soybean planting, it will be difficult to harvest all crops in February next year, so the planting area of cotton as the second choice will be affected.

Second cotton production in Bahia Prefecture accounts for 29% of cotton production in Brazil. Low cotton prices and weakening demand in China will affect farmers' choice this year.

The export volume of Brazil cotton will reach 653 thousand tons this year, an increase of 30% over the same period last year. The main reason for this increase is the depreciation of Brazil rial currency.

In addition, 8~10 cotton exports in Brazil increased by 20%, 81% and 55% respectively over the same period last year.

Cotton prices fall, plus new cotton in the United States.

All delays will benefit Brazil cotton exports.

Taking into account the larger

As well as the deceleration of economic growth, Brazil's cotton consumption this year is estimated to be 849 thousand tons and its consumption will be reduced.

In addition, consumers in Brazil prefer to buy imported garments, which will also affect their textile industry. In the face of strong competitiveness of textiles in China and other Asian countries, Brazil will lose some of its market.

Since January of this year, Brazil's domestic cotton prices have dropped by 25% compared with the international cotton prices. The Brazil government has held auction for crops in 2013 and 2014 to help cotton farmers sell.

At present, the Brazil national commodity supply company (CONAB) has approved the price difference between the market price and the target price for 905 thousand tons of cotton, the target price is about 1.66 rial / pound.

Under the project, the government of Brazil will openly auction cotton farmers or cooperatives' crops to pay for the supplement.