Brazil, the world’s second-largest cotton exporter, is expecting a very optimistic scenario for the 2021/22 crop, with prices on the rise as planting is about to end. Grain producers said cotton planted area grew 38% from the previous season to 177,800 hectares (439,353 acres). At the same time, other farmers praised timely rains in the top producing state of Mato Grosso for what it sees as a “spectacular” scenario for cotton and second corn.
According to SLC’s Chief Operating Officer Leonardo Celini, the company – which has planted more than 80,000 hectares with cotton in Mato Grosso alone – is expecting good yields amid favorable climate conditions in the region. Bom Futuro’s Production Director Inacio Modesto Filho painted a similar picture, saying the firm’s cotton area rose to 170,000 hectares from 147,000 hectares a year ago and that yields are expected to rise to 135 15-kg arrobas from 133 arrobas in 2020/21. Agricultural conglomerate Amaggi has also increased its cotton area this season to 150,000 hectares, Production Director Pedro Valente said, a 30,000-hectare jump that is already expected to happen again next year.
The 15-kg arroba, a Brazilian benchmark for cotton prices, was trading at 227 reais ($43.42) on Feb. 1, an 87% jump from early 2021, according to the food supply and statistics agency Conab. The agency has pegged Brazil’s cotton output at 2.71 million tonnes this season, up 15% year-on-year, while the planted area was seen up 12% to 1.5 million hectares.
