Brazil: Cotton and Products Annual

For 2021/22, Post forecasts cotton planted area to rebound 11 percent compared to the current season, to 1.6 million hectares. The Post forecast for 2021/22 cotton production is 13.2 million bales, or 2.9 million metric tons (MMT), up from 11.6 million bales (2.5 MMT) in 2020/21. Next season, planted area and production should remain below the records set in 2019/20, because of a higher cost of production and very good margins for alternative crops: soybeans and corn. Nevertheless, on the back of ample supplies and a favorable exchange rate, Brazil's cotton exports will continue to set records. Post forecasts cotton exports for 2021/22 to increase slightly to 11.5 million bales (2.5 MMT), up from 11 million bales (2.4 MMT) in the current season. At the same time, Post anticipates that domestic consumption will remain tepid at 3.2 million bales for 2021/22 (697 thousand MT), up from 3 million bales (653 thousand MT) in the current marketing year.