According to the National Association of Cotton Exporters, Anea, the 2019/20 cotton season is ending weaker than projected, but still shipments from Brazil should add up to a record 1.93 million tonnes of the commodity.

According to the entity, some cotton exports from Brazil were delayed but not canceled, due to the impacts of the Covid-19 pandemic. But the sector maintains confidence that in the new season (2020/21), which begins in July, it will be able to export volumes similar or even higher than those registered in the cycle ended this month, as many industries are resuming activities after the partial suspension of the isolation.

Before the reduction in demand and the fall in prices influenced by the impacts of Codiv-19, the forecast for 2019/20 was for exports of 2.1 million tonnes.

The 150,000 tonne shortage in exports compared to the forecast is due to the cotton that would be shipped in April, May and June, a volume that will now be exported in the second semester.

Although it was below expectations, Brazil’s exports will still have seen 50% growth compared to the previous cycle, according to Anea data, allowed by the increase in the harvest and the Chinese buying more from Brazil.

The following chart shows Brazilian cotton exports from January 2017 to May 2020:

Source: DataLiner

Currently Brazil is starting to harvest for the new season, which according to the first information has the potential to reach a record of almost 3 million tonnes of good quality produce.

For the 2020/21 season, with many of the deals made in advance, Anea maintains its export projections of 2 million tonnes, as the exchange rate has helped to make the Brazilian product more competitive, in addition to stimulating the local industry to use more of the Brazilian product, thus reducing imports.

Source: Reuters