Brazil: Cotton and Products Update
Post forecasts Brazil’s 2019/20 marketing year (MY) cotton area to reach 1.6 million hectares (ha), nearly unchanged from the MY 2018/19 planted area estimate of 1.59 million ha. Post forecasts 2019/20 production and exports will top current records, at 12.5 million bales and 8.5 million bales, respectively. Post estimates MY 2018/19 production at 12.3 million bales, and exports at 5.9 million bales. The 44 percent surge in exports for 2019/20 is forecast based on the current season’s bumper crop and the fact that Brazilian cotton farmers have already locked in sales contracts for around two-thirds of their production. As a result, Brazil is forecast to once again beat its cotton export record, despite the environment of moderating global prices.
