Cotton exports up 39% YoY in February

The world demand for Brazilian cotton is increasing rapidly and the technology used in the field has intensified exports. In February 2021, exports were 39% higher than the same month last year, totaling 235,500 tons exported and corresponding to revenue of US$ 377.6 million, according to data from ABRAPA (the Brazilian association of cotton producers). Mato Grosso do Sul is one of the states with technological and sustainable capacity, high in demand.

In 2020, 2.12 million tons were exported according to data from SECEX (the Foreign Trade Secretariat of the Ministry of Economy (MINFRA)). In the first two months of 2021 alone, 509,000 tons of Brazilian cotton were exported, about 25% of the total exported in the previous year. ABRAPA’s initial forecast is that 1.66 million tons should be exported by the end of 2021, however, the search for the raw material should intensify sales

The Brazilian cotton trade balance remains positive for the 2020/2021 harvest. “For the period August 2020 to July 2021, Brazil exported 1.7 million tons, 14% more than in the same period of the previous harvest, generating revenue of US$ 2.6 billion in just 7 months. These values ​​are linked to the cotton market in New York, which has been showing steady increases in recent months”, points out Adão Hoffmann, the Executive Director of AMPASUL (The southern Mato Grosso association of cotton producers).

The main purchasers of cotton in February were Bangladesh, receiving 52,000 tons, followed by China, according to data from SECEX/MINFRA.

Cotton production in Brazil in the 2020/2021 harvest is expected to be 16% lower than in the 2019/2020 harvest; for Mato Grosso do Sul this reduction is 23.5% despite the growing and record sales in the calendar year 2020. The total volume produced last year by Brazil was 2.52 million tons, according to ABRAPA; while Mato Grosso do Sul produced 58,000 tons, according to AMPASUL.

Source: Comex do Brasil

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