MUMBAI (Commoditiescontrol) – Cotton output in Brazil, the world's fifth-largest cotton producer, is likely to drop 9% on year to 6.4 million bales (480-lb) in 2015-16, thanks to the lower area under cultivation, according to the USDA attaché report.
Brazil is estimated to have produced 7 million bales in marketing year that ends July 2014, down 12% from 2012-13, the report said.
Brazilian growers are likely to reduced cotton area by 9% to 9 lakh hectare in 2015-16. The reduction is a result of the higher costs of production and the high cost to borrow money, it noted.
Yields are forecast to be at 1.54 metric tonnes per hectares, similar to last year’s yields, as a result of no significant changes in the technological package to be used.
The report said that Brazil’s cotton exports are expected to increase a tad in 2015-16 due to weak local currency, which is making Brazilian cotton more competitive. The country’s fiber shipment could reach 4 million bales, up from 3.98 million bales a year earlier.
Since the beginning of the year, the Real depreciated over 40 percent against the dollar. As a result, despite the relative lower global cotton prices, the Real depreciation has pushed up cotton domestic prices. For example, the average monthly cotton price in Brazil (in Real) increased by 44 percent since January 2015. In November 2015, the price averaged about R239.63 per pound, the highest price in the last four years.
The weaker Real, high inflation in Brazil, and the lower domestic demand for cotton is expected to push down imports even further. Post forecasts imports for 2015-16 to drop to 20,000 bales, a drop of 2 percent compared to the last year.
.png)
(By Commoditiescontrol Bureau; +91-22-61391533)
0 Comments 
Post Comment 
