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November 23, 2015

Cotton Third Most Important Crop in Mato Grosso after Soy, Corn

Not only is Mato Grosso the leading soybean and corn producing state in Brazil, it is also the leading cotton producer as well. The Mato Grosso Institute of Agricultural Economics (Imea) estimates that cotton will account for 12% of the state's gross domestic crop receipts in 2015/16 putting it as the third most important crop in the state. Soybean production is by far the most important accounting for 67% of the crop receipts followed by corn at 15%.

Farmers in Mato Grosso are allowed to start planting their full-season cotton on December 1st, which is the end of the cotton-free period in the state. Only about one-quarter of the cotton grown in the state is full season, while three-quarters of the cotton in the state is now grown as safrinha cotton planted after the first crop of soybeans are harvested. Farmers are concerned that the delay in soybean planting may not allow enough time to plant their safrinha cotton before the end of the ideal planting window which closes at the end of January.

Conab is estimating that the 2015/16 cotton acreage in the state will increase 1-3% while the total production in the state will decrease 1-3% due to lower yields. The state of Mato Grosso will plant approximately 61% of Brazil's total cotton acreage in 2015/16. Bahia is the second leading cotton producing state in Brazil with approximately 26% of the total cotton acreage.