Brazilian cotton exports expected to grow in September

According to the National Association of Cotton Exporters (ANEA), September should be a good month for sales abroad. “September is going to be bigger than August, for sure,” said Henrique Snitcovski, head of the organization.

According to him, this month’s shipments should exceed last year´s exports which reached 164,600 tons, and was the best September in its history. “Our expectation is that we can achieve a little more than last year,” said the executive.

According to him, the shipments of 109,000 tons registered in August were significant, but they still didn’t reach volume levels exported in 2012 and 2011, which were close to 120,000 tons in the same month.

The graph below for Brazilian cotton exports from January 2017 to July 2020:

Brazilian Cotton Exports (HS 5201) | Jan 2017 to Jul 2020 | WTMT

Chart source: DataLiner

(To request a DataLiner demo, click here)

Shipments in the coming months should also benefit from the postponement of exports during the worst moments of the pandemic when prices plummeted.

Thus, exports will count on new sales and the carrying out of previously planned dispatches. ANEA had estimated postponements of 150,000 tons.

According to Snitcovski, the devalued Brazilian currency guarantees the competitiveness of the national product. “Producers have already received a good price for the crop that is being harvested. They have already sold a good part of the next crop, and now they are starting to look for alternatives to sell the 2022 crop, looking for opportunities to protect costs,” he informed.

Source: Reuters

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