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Brazil's Mato Grosso will see rise in cotton stocks: IMEA
Apr '14
Brazil’s Mato Grosso state is likely to end cotton year 2013-14 with a 58.2 percent rise in inventory compared to the last season, according to a press release issued by the Mato Grosso Institute of Agricultural Economics (IMEA).
Between July 2013 and June 2014, Mato Grosso would have a total raw cotton supply of 1.011 million tons, about 13.9 percent more than the last season, says the IMEA report on cotton supply and demand estimate in Mato Grosso for 2013-14 season.
The closing stock of cotton in 2012-13 in Mato Grosso was 108,839 tons. Cotton production in the current season is expected to be 902,542 tons, which would be 31.4 percent higher than previous season’s harvest of 687,000 tons.
The weak prices of corn has led farmers to grow more cotton this season, with the area under cotton cultivation increasing by 33.7 percent in 2013-14 compared to the previous season, says the IMEA report.
On the demand side, the domestic Mato Grosso industry is likely to consume 52,440 tons of cotton this season, which would be an increase of 1 percent over the previous season. However, the consumption in other states of Brazil is expected to decrease by 9.1 percent year-on-year to 405,000 tons.
Between July 2013 and June 2014, Mato Grosso is estimated to export 381,807 tons of cotton, a sharp rise of 35.5 percent over the previous season.
Thus, the ending cotton stocks with Brazil’s Mato Grosso is expected to reach 172,134 tons, which would be an increase of 58.2 percent compared to the 2012-13 ending inventory level of 108,839 tons.

Fibre2fashion News Desk - India

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