Brazil: Cotton and Products Update
Post forecasts Brazil’s 2016/17 cotton area at 940,000 hectares (ha), a two percent drop compared to the previous year. The planted area reduction is a result of the high cost of production, high cost to borrow money, and a difficult financial situation for many farmers after dealing with adverse weather conditions in the last few years. Exports are forecast to reach 3.2 million bales and domestic consumption is forecast at 3.0 million bales, a marginal growth compared to last year, as a result of a more positive economic outlook in Brazil.
