Brazil: Cotton and Products Update
Post forecasts Brazil’s Marketing Year (MY) 2014/15 cotton area to drop by about 11 percent to one million hectares, compared to the previous MY. Current domestic prices are not attractive for farmers that would plant cotton as a second crop (“safrinha”). In September, the Brazilian Government approved R$300 million (US$134 million) to finance the Equalization Premium Paid to the Producers Program (PEPRO) to support cotton producers in the 2014/15 MY.
