Brazil: Cotton and Products Update

Post forecasts 2022/23 planted cotton area at 1.66 million hectares (ha), with production at 13.3 million bales (2.89 million metric tons, MMT), about a 13 percent increase from the 2021/22 estimated production of 11.52 million bales (2.5 MMT). Cotton area is forecast to rise because of favorable weather leading to timely first-season soybean planting and improved yields, as well as a favorable outlook for prices and profitability. Post forecasts Brazil’s domestic cotton consumption at 3.5 million bales for 2022/23 (762 thousand MT), as compared to the estimated 3.2 million bales (697 thousand MT) for the previous MY. Post increased the 2022/23 marketing year export forecast to 8.7 million bales (1.89 MMT), which represents an increase of 11 percent on the current season export estimate of 7.73 million bales (1.68 million metric tons), primarily due to the improved harvest and increased sales to its main trading partner, China,