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Brazil's cotton output up 18.6% to 1.5mn tons in 2016-17
Jan '18
Brazil’s cotton output in the 2016-17 season increased 18.6 per cent year-on-year to 1.529 million tons, pushed up by the 20.6 per cent increase in the average productivity, since area under the crop decreased 1.7 per cent to 939,100 hectares. The weather favoured crop development during the growing season, but hampered the harvesting season.

Domestic textile consumption increased by 5 per cent to 690,000 in the 2016-17 season, due to the recovery of textile companies, according to data from Conab (National Company for Food Supply). Despite the higher production, the domestic surplus increased compared to the 2015-16 season.

Meanwhile, from January to November 2017, Brazil exported 695,400 tons of cotton, which is 5.1 per cent lower than the amount shipped in the same period last year, according to data from the Secretariat of Foreign Trade (Secex). Although the volume decreased compared to the previous year, exportations were above the sector’s expectations.

The decrease in volume of export was owing to lower quantity shipped in the first semester, which was due to lower production in 2016. During June to November 2017, Brazil exported 558,000 tons of cotton, registering 37 per cent growth compared to the same period of the previous season.

Cotton imports during first eleven months of 2017 stood at 33,600 tons, showing an increase of 45 per cent compared to the same period of the previous year. Of this, 32,000 tons were bought in the first semester.

Thus, mainly in the second semester, firm cotton exports balanced supply and demand in the Brazilian market. This limited the drops in average prices, although production was higher in 2016-17, the Center for Advanced Studies on Applied Economics (CEPEA) said.

In 2017, the CEPEA/ESALQ cotton Index dropped only 3.07 per cent. The average price during the year was 2.6105 BRL per pound, only 1.5 per cent higher than in 2016. (RKS)

Fibre2Fashion News Desk – India

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