WASHINGTON, DC – USDA’s Foreign Agriculture Service (FAS) projects 2021 Brazilian cotton plantings at 3.7 million acres, down 10 percent from the current harvest. The forecast is mostly based on the tepid outlook for global consumption, and consequently low prices. and the availability for Brazilian farmers to grow more profitable alternatives, such as soybeans or corn. If realized, Brazil’s cotton production will total 12.1 million bales next year following a 13.4 million bale crop this year. Domestic consumption, according to the FAS, is expected to plummet amid the hard-hitting coronavirus pandemic but exports are expected to remain strong. Current estimates have Brazilian exports at 8.9 million bales this season and a slight increase to 9 million bales next year due to a weaker real (currency) than allows Brazilian commodities to be more competitive internationally.
(SOURCE: All Ag News)