According to the latest report of the U.S. Department of agriculture, the cotton planting area in Brazil in 2021 / 2022 was 1.45 million hectares, higher than 1.37 million hectares this year, but lower than the previous forecast.
According to the report, Brazil's cotton output in 2021 / 2022 is expected to be 12.3 million bales, higher than 11.3 million bales in 2020 / 2021, with an increase of more than 10%. The output is lower than the previous forecast because of the drought. The unit yield is expected to be 1847 kg / ha, higher than 1794 kg / HA in the previous year.
Brazilian cotton exports are expected to reach a new high of 11.1 million bales in 2021 / 2022, higher than 11 million bales this year. In 2020 / 2021, Brazilian cotton exports increased by more than 20% year-on-year. In recent years, China has accounted for about 30% of Brazil's cotton exports. In 2020 / 2021, China's exports to China exceeded 700000 tons, a year-on-year increase of 20%.
After the rapid expansion in recent years, the cotton planting area in Brazil tends to be stable. Although Brazilian cotton farmers benefit from the rise in cotton prices, the sharp rise in production costs limits the profit of cotton planting, but the current cotton price is still very attractive. The rise in international cotton prices and the depreciation of the real have increased the domestic cotton price in Brazil by more than 10% year-on-year. Therefore, cotton farmers are still very willing to plant.
Source: Master Boyi