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Wednesday, June 26, 2024

Export demand does not keep up with Brazilian cotton supply

Brazilian cotton lint production hit a record in the 2022-23 season due to a hike in acreage and yields. However, export demand has not kept up with supply.

“Adverse economic conditions in various countries and regions could not keep up with the supply of Brazilian cotton,” CEPEA researchers informed.

The Brazilian Cotton Growers Association (Abrapa) estimated the 2022-23 cotton lint production at a record 3.23 million tons, up 26.5 percent over 2021-22

The CEPEA further informed that from January to May 2023, even in the off-season, cotton prices dropped significantly, pressurized by expectations of a good harvest.

With an enormous surplus, expectations fell on exports, which turned out to be relatively slow due to prices considered unattractive by cotton sellers.

Current projections from the National Supply Company (CONAB) indicate that cotton lint production in the 2023-24 season is estimated at 3.1 million tons.

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