According to recent estimates, Brazil’s cotton cultivation areas are set to expand leading to a record production during the 2023-24 season though productivity might drop slightly, says a report by the Centre for Advanced Studies on Applied Economics (CEPEA).
Latest data from the National Supply Company (CONAB) also suggests, Brazil's cotton output will expand by 13.4 per cent Y-o-Y and 1.12 per cent M-o-M to reach 3.6 million tons this season. Although productivity is expected to decrease marginally by 2.5 percent, with an estimated 1,860 kilos per hectare, the expanded cultivation area of 1.94 million hectare is anticipated to ensure a record harvest.
Domestic consumption is likely to rise by 4.4 per cent Y-o-Y rise in domestic consumption to 710 tones despite a projected 2.7 per cent M-o-M decrease.
Additionally, exports are likely to grow by 67.8 per cent Y-o-Y and 9.5 per cent Y-o-Y to reach 2.715 million tons, as per CEPEA's latest fortnightly report on the Brazilian cotton market.
Export data from the Foreign Trade Secretariat (SECEX) indicates, from August 2023 to March 2024, cotton shipments surpassed 30 per cent of the total exports recorded from August 2022 to July 2023, highlighting a strong performance in international markets.
