Cotton breaks shipping record

May was one of the best months in history for Brazilian cotton exports, with 115,200 tons shipped. This was 66% higher than the amount exported in the same month of 2020. The result sets another record: although the end of the commercial year of the 2020/21 cotton is not until July, the total shipments for this cycle, which total 2.23 million tons, are already 14% higher than those of the entire 2019/20 season. Export revenues up to May rose from US$ 3.06 billion in 2020 to US$ 3.5 billion this year.

The forecast by ABRAPA (the Brazilian association of cotton producers) is that shipments will total 2.35 million tons for this harvest, already including sales for the remaining two months. If the projection is confirmed, the growth compared to the past harvest will be 20%.

China is the main destination for Brazilian cotton, having purchased 30% of Brazil’s exports this year. “We are strengthening partnerships with entities that represent the Chinese textile sector to keep pace with foreign trade. In less than 60 days, we signed an agreement with the China Cotton Association (CCA) and with the China National Cotton Exchange (CNCE)”, says the president of ABRAPA, Júlio Busato.

In May, Brazil’s 3 biggest cotton buyers were Turkey, Vietnam, and China, each importing more than 23,000 tons. Chinese imports exceeded 700,000 tons in the 2020/21 cycle, 22% more than in the entire previous season. This even exceeds the average domestic consumption of the textile industries in Brazil. Indonesia and Bangladesh also appear on the list of Brazil’s main cotton customers.

Source: Valor Econômico

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https://valor.globo.com/agronegocios/noticia/2021/06/10/algodao-tem-recorde-de-embarques.ghtml

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