Brazilian growers expect Brazilian cotton production to increase and prices to rise

Foreign media news on February 10: Brazilian cotton growers are very optimistic about the crop expectation in 2021 / 22, believing that the output will increase and the price will follow.

Brazilian cotton sowing is coming to an end, and the sowing area and yield are expected to increase. This is in sharp contrast to the decline in area and yield caused by delayed sowing last year.

Brazilian grain producer SLC Agriculture said the company’s cotton planting area reached 177800 hectares, an increase of 38% over the previous year. Timely rainfall in Mato Grosso, the number one cotton producing state, contributed to the growth of cotton and second season corn. Leonardo, chief operating officer of SLC? Serini said that the company has planted more than 80000 hectares of cotton in Mato Grosso alone, and is expected to achieve a good harvest under favorable weather conditions in the region.

Another grower, BOM Futuro, has a similar situation. Its cotton area has increased from 147000 hectares a year ago to 170000 hectares, and the unit yield will also increase to 135 aroba per hectare (1 aroba is equal to 15 kg), higher than 133 aroba per hectare in 2020 / 21.

The Brazilian Agricultural Group amaggi also increased the cotton area this year to 150000 hectares, an increase of 30000 hectares over the previous year.

The reason for the increase in sown area is that the rising price of cotton has prompted farmers to expand sown area. Cotton production in 2020 / 21 was disappointing, driving up cotton prices.

According to conab, Brazil’s national commodity supply company, on February 1, the benchmark price of Brazilian cotton was 227 reais (US $43.42) per 15 kg, an increase of 87% over the beginning of 2021. Despite the sharp increase in production costs, cotton growers still expect cotton planting benefits to be very attractive. The agency estimates that the Brazilian cotton output this year will be 2.71 million tons, a year-on-year increase of 15%, and the planting area will increase by 12% to 1.5 million hectares.

Source: Master Boyi

Post time: Feb-17-2022