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Brazilian 2015/16 cotton acreage to dip around 2.3%
Oct '15
Quoting data released by the National Company for Food Supply (CONAB), CEPEA in its latest report said Brazilian cotton acreage in 2015/16 may reduce around 2.3 per cent vis-à-vis the previous season.

CEPEA said cotton planted area may fall to 993,000 hectares in the 2015/16 season from 1.016 million hectares in the 2014/15 season.

In Mato Grosso, the biggest cotton producing state, output is expected to go up between 1.7 and 3.8 per cent, while in Bahia state, the second largest producer, cotton harvest may dip between 1 and 4.1 per cent.

However, favoured by expectation of an increase of 2.2 per cent in yields, cotton supply may reach around 1.52–1.56 million tons, which is either 0.2 per cent down or 2.1 per cent up from 2014-15.

International prices were firm in early October, but valuation of the Brazilian Real against the dollar put a downward pressure on export parity.

Thus, sellers increased supply in the Brazilian market, especially for batches with low quality, while for good quality cotton, producers continued to seek higher prices, but purchasers were refrained.

In the first fortnight of October, the CEPEA/ESALQ Index, with payment in 8 days for cotton type 41-4 decreased slightly by 0.23 per cent.

CONAB also revised downwards domestic cotton consumption of the 2014/15 crop to 780,000, while exports were revised up to 790,000 tons.

“Therefore, ending stocks should reach 469,800 thousand tons, 6.4 per cent lower than the previous forecast,” CEPEA averred.

“For the 2015/16 crop, Brazilian cotton consumption may be 810,000 tons and exports 780,000 tons,” CEPEA informed. (AR)

Fibre2Fashion News Desk – India

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