According to a report by the U.S. agriculture advisor, Brazil's cotton acreage will reach 1.08 million hectares in 2017/18, up 15% over the same period of the previous year, mainly due to the corn’s lower prices in the previous year and farmers' higher expectation of yields. Therefore, changed corn Into cotton. Brazil's cotton production is expected to reach 16,883,000 tons, an increase of 10%.
As global cotton consumer demand rises and cotton quality in Brazil improves, Brazil's cotton exports are forecast to reach 775,000 tonnes in 2017/18, an increase of 24% at the same period of the previous year. Although Brazil's economy is gradually recovering and domestic consumption is likely to increase slightly, Brazilian cotton is still mainly for exporting.
Matagrosso and Bahia are the most important cotton-growing areas in Brazil about 88% of the total cotton plantation in Brazil. The 2017/18 cotton-growing area in Matagrosso is expected to reach 715,000 hectares, up 14% from the previous year and Bahia will have 250,000 hectares of cotton acreage, an increase of 24 over the previous year.
By the end of September, cotton harvesting in the state of Matter Grosso concluded almost 627,000 hectares of harvested land, slightly higher than 2015/16; and Bahia's harvested area was 202,000 hectares, down sharply from 2015/16 .
In 2016/17, Brazil exported 630,000 tonnes of cotton, down 34% on a year-on-year basis, mainly due to a decrease in Brazilian cotton production in 2015/16. Indonesia, Turkey, Vietnam and South Korea are the major export destinations for Brazilian cotton while Bangladesh has replaced China as Brazil's fifth-largest export destination. Due to the high cotton stocks in China, China's imports of Brazilian cotton have been declining in the recent three years.
In 2016/17, sufficient supply of cotton in Brazil and revaluation of the U.S. dollar brought downward pressure on Brazilian cotton prices. At the same time, external factors such as the increase in US production and ending stocks have also put pressure on Brazil's cotton prices.