Brazilian cotton exports set record for February

In February, Brazilian cotton exports totaled 235,500 tons, 38.59% higher than the 169,900 tons exported in February 2020 and a record for the second month of the year. In the first two months, cotton shipments totaled 500 thousand tons, an increase of 6.38% compared to the same period last year.

According to ANEA (the national association of cotton exporters), the increase is the result of a demand that is recovering faster than expected. “This allowed the shipment of production that was already negotiated but also opened up space for new purchases”, evaluated Henrique Snitcovski, president of the entity. Given this scenario, the association raised the expectation of shipments for the cycle from July 2020 to June 2021 to 2.3 million tons –  with1.8 million shipped up until February. The previous expectation was 2.15 million tons. Compared to the record volume of the past harvest, 1.9 million tons, the increase was 21.76%.

Brazilian Cotton Exports (HS 5201) | Jan 2017 to Jan 2021 | TEU

Source: DataLiner (To request a demo of the DataLiner click here)

Of the main destinations for Brazilian cotton, China accounted for 35% of the volume shipped until February, followed by Vietnam, importing 16%, and Pakistan, importing 15%. “This is partly due to the control of the pandemic, but is mainly due to the behavior of importing markets that seek to buy ahead to guarantee quality cotton amid the recovery of demand,” said the leader. The movement was also favored by the exchange rate, which made Brazilian cotton more competitive.

Snitcovski estimates that approximately 60% of the new harvest of 2 million tons planted up until February – but lower than the 2.9 million tons of 2019/2020 – is already negotiated. “There is still room for the producer to take advantage of good prices to negotiate the cotton,” he says.

Source: Valor Econômico

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