South America Calling
Alastair Stewart South America Correspondent

Friday 12/27/13

Brazil's 2013-14 Cotton Crop Seen 30% Higher

Brazilian cotton output will jump 30% in 2013-14 on a major expansion of area and recovering yields after a difficult 2012-13, the Brazilian Cotton Producers Association (Abrapa) forecast Friday.

The association pegged production at 1.26 million metric tons, while area is seen growing 22% to 2.6 million acres.

Planting begins in November and harvesting runs through to July.

Area rebounded from a major decline in 2012-13 in response to slumping prices.

Average yields will be around 1.43 tons per hectare. Production costs will rise 7.0% to 5.677.55 per ha, ($974 per acre.).

According to the Brazilian Cotton Exporters Association (Anea), lint cotton exports from the 2012-13 season, which are shipped from July 2013 onwards, will fall to around 400,000 metric tons from 955,000 mt the year before.

This type of drop makes it hard for Brazil to maintain clients.

In 2010-11, Brazil overtook Australia to become the world's No. 3 exporter but has slid back in the following two seasons.

The volatility in cotton production comes about because the oilseed is in direct competition with corn in Mato Grosso as the second crop to follow soybeans.

With domestic demand stable at around 800,000 to 900,000 mt, Brazil may not export much more than last year though.

Brazil's principle export markets continue to be South Korea, Pakistan, China, Indonesia and Malaysia.

(AG)

Posted at 1:27PM CST 12/27/13 by Alastair Stewart
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