By Roberto Samora
April 1 (Reuters) - Brazil's cotton production growth rate will likely face more lags next year due to increased input costs, according to the Brazilian Association of Cotton Producers (Abrapa), despite investments in quality and incentives for the use of cotton.
The 2022/23 crop, which registers slower-than-usual advance sales for the season, may decrease due to concerns about demand amid a worldwide economy impacted by the war in Ukraine, Abrapa's president Julio Busato, told Reuters.
Although cotton prices on the New York cotton exchange for earliest delivery have recently reached their highest levels in more than ten years, at around 140 cents per lb, costs have grown by almost 40%, halting early deals.
If the costs of inputs and the price of cotton remain the same, we should back off a little in the cotton area, and make room for corn and soybeans, Busato said.
According to official figures, Brazil, the worlds second largest cotton exporter, reached record production of 3 million tons in the 2019/20 season. Its harvest decreased in the following cycle to 2.35 million tons due to the COVID-19 pandemic, and the current 2021/22 season is returning closer to the historic record high.
Source: nasdaq.com