Nov 03, 2010
Brazilian Cotton Acreage Certain to Increase in 2010/11
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Record high international cotton prices are encouraging Brazilian farmers to increase their 2010/11 cotton acreage. The Brazilian 2010/11 cotton acreage in Brazil is expected to increase 26% from 835,000 hectares grown last year to 1.05 million hectares this year. With all the current excitement surrounding cotton, those estimates may actually end up being low.
Mato Grosso, Bahia, and Goias are the three principal cotton producing states in Brazil. Full season cotton planting in Mato Grosso and Goias will start later in November and end in early January. The full season cotton in these two states is then harvested in June or July. Cotton planting in Bahia starts later in January or February and the crop is harvested between late July and early August.
In these three states, which account for nearly 90% of Brazil's cotton acreage, more than 60% of the anticipated cotton production has already been sold and the principal buyers of Brazilian cotton are generally China, Turkey, and Indonesia.
The interest in growing cotton in Brazil has spread to more than just the main producing states. Minas Gerais is a small cotton producing state, but acreage in the state is expected to increase 37% this year from 15,000 hectares to 20,600 hectares. Cotton production is of special interest in Minas Gerais due to the large textile industry located in the state which accounts for more than 200,000 jobs.
Most observers feel that the high cotton prices could last for more than one growing season while worldwide stocks are rebuilt. Farmers in Brazil are hoping that the cotton price remains elevated all the way through the 2012 harvest season. If that does turn out to be the case, than the cotton acreage in Brazil may continue to expand next year as well.