Brazil cotton exports should total more than 1.6 million tonnes

Brazil is expected to export between 1.6 million and 1.7 million tonnes during the 2021/22 cotton harvest, according to the National Association of Cotton Exporters (Anea). “Exports in this crop should remain stable compared to the previous one,” said Miguel Faus, president of Anea, during a panel discussion at the 13th Brazilian Cotton Congress, hosted by the Brazilian Association of Cotton Producers (Abrapa).

According to Faus, the export market’s current situation is downward movement and anxious agents. “There is a lot of concern in the market. Everyone is watching prices and waiting to see if the market will return to previous levels,” he explained.

Faus noted that freight remains a source of concern for exporters regarding the availability of containers for international maritime transport and on a domestic level. “The container shortage persists and will not be resolved this year,” he said.

“We will most likely have to export this crop until next year due to a lack of ships.” And in Brazil, freight prices continue to rise significantly due to high diesel prices and high inflation,” said Anea’s president.

See below the track record of Brazilian cotton exports from January 2021 to June 2022. The data are from Datamar’s DataLiner.

Cotton exports from Brazil | January 2019 – June 2022 | WTMT

Source: DataLiner (click here to request a demo)

Beyond cotton exports

Another point that worries exporters, according to Miguel Faus, is the “excessive” volatility of fiber prices. “The third concern is the global recession. We see inflation rising in several countries around the world and interest rates rising, which causes a retraction in trade. Our concern is how long this economic scenario will last,” he noted.

Source: Canal Rural

To read the full original article, please go to: https://www.canalrural.com.br/noticias/agricultura/exportacao-de-algodao-deve-somar-mais-de-16-milhao-de-toneladas/

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