Brazil: Cotton and Products Update

Post forecasts 2022/23 cotton area planted at 1.65 million hectares (ha), an increase of just over one percent from the 1.63 million ha cotton area estimate for 2021/22. Post’s forecast is based on expectations that despite challenges, such as risings costs and tightening margins, Brazilian producers are optimistic about the crop’s prospects, and eager to continue growing the sector. Production for 2022/23 is forecast at 13 million bales (2.83 million metric tons, MMT), based on improved yields. This would represent a significant increase from the current season production estimate of 12.1 million bales (2.63 MMT), where output was lower than anticipated due to unfavorable weather. Domestic consumption is expected to increase slightly, while exports are forecast be strong but below the pre-pandemic record. Post forecasts 2022/23 MY exports at 9.2 million bales, up from the current season export estimate of 7.7 million bales. Exports continue to be encouraged by weak domestic currency.