By Nayara Figueiredo
SAO PAULO (Reuters) – Cotton exports from Brazil are expected to reach 1.742 million tonnes of the lint in the 2021/22 commercial year (July-June), about 28% below the record seen in the previous cycle, it said on Thursday. the National Association of Cotton Exporters (Anea), in a scenario of lower supply for shipment.
The organization’s president, Miguel Faus, told Reuters that the product being exported comes from a crop of 2.36 million tons.
“The drop in 2021/22 is due to a smaller harvest. In the previous one, production was 3 million tons, so it was possible to export 2.414 million,” he said.
For the 2022/23 season, which will begin in July, the expectation is for a recovery in shipments, as demand remains heated and production under development in the fields may reach 2.85 million tons, estimated the executive.
However, the sector is apprehensive about the unfolding of the pandemic in China, the main cotton importer in the world, due to a possible risk to the country’s logistics.
“There was already a logistical problem arising from excess demand in the world and later by the pandemic, but that had been affecting us less this season… of the current cycle.”
China is the main destination for Brazilian fiber exports (30.2%), followed by Vietnam (16.7%), Turkey (13.2%), Pakistan (11.2%) and Bangladesh (10.6% ), according to Anea.
A positive point for exporters in Brazil, according to Faus, is the dispersion of buyers. Despite the importance of the Chinese market, the 30% share is seen as “healthy”, as it does not indicate a high level of dependence.
INPUTS
Regarding the planning of the crop that will begin to be planted in December, the president of Anea highlights the concern with the supply and prices of inputs, with emphasis on the high costs with fertilizers caused by the war in Ukraine.
“The big producers have already bought, closing prices and deadlines for their needs… But even those who closed, we need to see if they will receive”, he said.
Russia is the biggest supplier of fertilizers to Brazilians, who import around 85% of their consumption.
He said that the objective is not to reduce the planted area, as international prices are very attractive, but it is still too early to say that the area will be maintained. “We hope there will be no decrease in area, but it can happen.”