The attribution year of Brazilian cotton production has been adjusted, and the cotton production for 2023/24 has been moved to 2023 instead of 2024. The report predicts that the cotton planting area in Brazil will be 1.7 million hectares in 2023/24, and the output forecast will be raised to 14.7 million bales (3.2 million tons), because of the Dafengshou (Salad of assorted fresh vegetables) of cotton in the country, and the good weather will increase the cotton yield per unit area of each state. After the production adjustment, Brazil’s cotton production in 2023/24 exceeded that of the United States for the first time.
The report states that Brazil’s cotton consumption in 2023/24 was 3.3 million bales (750000 tons), with an estimated export volume of 11 million bales (2.4 million tons), due to an increase in global cotton imports and consumption, as well as a decrease in production in China, India, and the United States. The report predicts that the final inventory of Brazilian cotton for the year 2023/24 will be 6 million bales (1.3 million tons), mainly due to increased exports and domestic consumption.
According to the report, the cotton planting area in Brazil for the year 2023/24 was 1.7 million hectares, almost on par with the historical high of 2020/21, an increase of nearly 4% year-on-year and an increase of 11% compared to the average of the past five years. The expansion of cotton cultivation in Brazil is mainly due to the expansion of the areas in Mato Grosso and Bahia prefectures, which account for 91% of Brazil’s cotton production. This year, the area of Mato Grosso State has expanded to 1.2 million hectares, mainly due to cotton having a competitive advantage over corn, especially in terms of price and cost.
According to the report, Brazil’s cotton production in 2023/24 was increased to 14.7 million bales (3.2 million tons), an increase of 600000 bales compared to before, a year-on-year increase of 20%. The main reason is that the weather in the main cotton producing areas is ideal, especially during the harvest period, and the yield has reached a historic high of 1930 kilograms per hectare. According to CONAB statistics, 12 out of 14 cotton producing states in Brazil have historically high cotton yields, including Mato Grosso and Bahia.
Looking ahead to 2024, the new year of cotton production in Mato Grosso state, Brazil will begin in December 2023. Due to the decline in competitiveness of corn, the cotton area in the state is expected to increase. The sowing of dryland fields in Bahia state has started at the end of November. According to data from the Brazilian Cotton Farmers Association, nearly 92% of cotton production in Brazil comes from dryland fields, while the remaining 9% comes from irrigated fields.
According to the report, Brazil’s cotton exports for this year are expected to be 11 million bales (2.4 million tons), almost consistent with the historical highest level in 2020/21. The main reasons are the decline in the Brazilian real exchange rate against the US dollar, an increase in global imports (led by China and Bangladesh) and consumption (especially Pakistan), and a decrease in cotton production in China, India, and the United States.
According to statistics from the Brazilian International Trade Secretariat, Brazil exported a total of 4.7 million bales (1 million tons) of cotton from January to October 2023. Since August to October 2023/24, China has been the largest importer of Brazilian cotton, importing a total of 1.5 million bales (322000 tons), a year-on-year increase of 54%, accounting for 62% of Brazil’s cotton exports.
Post time: Dec-12-2023