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April 14, 2015

Cotton Acreage and Production to Decline in Brazil

In their latest monthly crop report released last week, Conab is estimating that farmers in Mato Grosso will plant 562,000 hectares of cotton in 2014/15, which is down 12.5% compared to the 643,000 hectares planted in 2013/14. The total cotton production in the state will decline 14.4% compared to last year to 861,000 tons. The reduction is in response to low cotton prices and the high cost of production.

Mato Grosso is the leading cotton producing state in Brazil followed by Bahia which is expected to plant 281,000 hectares of cotton or 12% less than in 2013/14. The total fiber production in Bahia is expected to be 445,000 tons or 7.9% less than last year.

The total cotton acreage in Brazil is estimated at 976,900 hectares or down 12.9% compared to last year. The total fiber production in Brazil is estimated at 1.509 million tons or 13% less than in 2013/14.

Mato Grosso is responsible for approximately 60% of Brazil's cotton production and over 70% of the cotton in the state is planted as a second crop following soybeans. The harvesting of early-maturing soybeans during the month of January allows farmers to plant a second crop of cotton by the end of January when the ideal planting window closes.