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Brazil cotton exports impacted by global economic state

May, 05, 2023 Posted by Lucas Lorimer

Week 202321

Cotton exports from Mato Grosso suffered a significant decrease, recording lower volumes than those recorded in the same period of last year, due to a reduced global consumption in recent months. A new projection of cotton shipments from 2021/22 of the Institute of Mato Grosso Agricultural Economics (IMEA) points to a decline of 14.53% in volume when compared to the estimate in April of this year.

According to IMEA, in its Supply and Demand report, released on Tuesday (2), Mato Grosso will export 1.09 million tons of cotton from the 2021/22 harvest.

When it comes to the domestic market it is expected that 24.72 thousand tons will be consumed by Mato Grosso and that 495.34 thousand tons will be destined for other states.

“Lower volume of cotton shipments, reports of rolling over some marketing contracts of the 2021/22 harvest to 2022/23, and some lots not doing the standard coloring, the final stocks were estimated at 201.24 thousand tons of cotton”.

The chart below exemplifies Brazilian cotton (hs 5200, 5201) exports through maritime ports between Jan 2020 and Feb 2023. The data comes from Datamar’s business intelligence platform, DataLiner.

Brazilian cotton exports | Jan 2020 – Feb 2023 | WTMT

Source: DataLiner (click here to request a demo)

Expected improvement in 2022/23 harvest

There is an expectation of improvement in the world economy according to IMEA when it comes to the 2022/23 harvest. With the prospect of an offer 21.62% higher than the 2021/22 crop, it is expected that 1.34 million tons of cotton are sold this season. The projected volume is 22.61% higher than expected for the 2021/22 harvest.

IMEA also highlights that in relation to demand in the Brazilian market, it is estimated that 25.86 thousand tons of cotton will be consumed by Mato Grosso and 513.89 thousand tons by the interstate market.

“Thus, with the largest volume of transitional stocks from the 2021/22 harvest to 2022/23, the final stocks are expected to be 326.62 thousand tons”.

It is noteworthy that for the 2022/23 cotton harvest production is estimated at 4.82 million tons of cottonseed and 2.01 million tons of cotton, an increase of 10.04% and 10.61%.

Source: Canal Rural

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