Brazil hopes to become world’s largest cotton exporter in 2023, surpassing U.S.

Author of the article: Publishing date: Dec 12, 2022  •  1 hour ago  •  2 minute read Join the conversation SAO PAULO — Brazil could become the world’s largest cotton exporter in 2023, with an increase in planted area helping it to surpass the United States, according to producers in the South American country. If that…
Brazil hopes to become world’s largest cotton exporter in 2023, surpassing U.S.

Author of the article:

Publishing date:

Dec 12, 2022  •  1 hour ago  •  2 minute read

Join the conversation

SAO PAULO — Brazil could become the world’s largest cotton exporter in 2023, with an increase in planted area helping it to surpass the United States, according to producers in the South American country.

If that happens, it would be another milestone in Brazil’s march to the forefront of global food producers. It has already overtaken the United States as the world’s top soybean producer and exporter, and could soon become the top corn exporter.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Brazil currently ranks fourth among global cotton producers – below China, India and the United States – but is the No.2 exporter.

“We will soon be the world’s largest exporters, maybe already next year,” said Julio Cezar Busato, the head of Brazilian association Abrapa.

While sowing in Brazil next year is seen rising 1.3% from the previous season to 1.66 million hectares, cotton in the United States is facing competition from more profitable crops, including corn, soybean and wheat, Brazilian producers said.

A 30% reduction in U.S. cotton sowing could be enough to push the South American nation into global exporting leadership, they said, bringing forward one of their key targets.

That would be a dramatic cut, but is not impossible as U.S. producers make room for more grain planting.

Abrapa expects Brazil to increase its cotton shipments by 22% to 2.2 million tonnes next year from nearly record output of 2.95 million tonnes.

Brazilian cotton producers see the sector ready to move forward with next year’s crop, despite higher costs, in order to protect progress in Asian markets, particularly China.

“Mathematically, we should reduce the cotton acreage,” Busato said, noting production costs rocketed 27% after a surge in input price in 2022. “But we won’t do that as we must retain the markets we have conquered.”

Consultancy hEDGEpoint Global Markets said cotton planting in Brazil should occur “within the ideal window” considering current climate conditions, leading to a growth in acreage and potentially helping pressure global prices – which are already “near or even below cost of production” for U.S. growers.

“It is too early to quantify how much cotton area the U.S. will actually lose, but it clear that this crop is already at a disadvantage” to competitors such as corn, soybeans, peanuts, rice and wheat, analyst David Silbiger said. (Reporting by Roberto Samora Writing by Gabriel Araujo Editing by Mark Potter)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
European Bonds Plagued by Inflation Set for Record Annual Loss
Read More

European Bonds Plagued by Inflation Set for Record Annual Loss

European bonds tumbled, extending their worst year on record, as signs of persistent inflation rekindled concern over how much further the central bank will have to raise interest rates. Author of the article: Bloomberg News Constantine Courcoulas Published Dec 30, 2022  •  1 minute read Join the conversation j3f](zi(a7lqcjtzsdm5j90n_media_dl_1.png Bloomberg RSS (Bloomberg) — European bonds…
Poilievre Seeks Canada Tory Leadership After O’Toole Ouster
Read More

Poilievre Seeks Canada Tory Leadership After O’Toole Ouster

Author of the article: Bloomberg News Jen Skerritt (Bloomberg) — A staunch supporter of the trucker protest that has taken over the downtown of Canada’s capital city is seeking to lead the country’s Conservative Party. Pierre Poilievre, a 42-year-old finance critic from the Ottawa area, said in a Twitter post on Saturday he is running…
China to strictly control new oil refining capacity, cut emissions
Read More

China to strictly control new oil refining capacity, cut emissions

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content BEIJING — China will strictly control new capacity in its oil refining industry and improve production efficiency of petrochemical products as it strives to reduce excessive capacity and lower emissions in line with its pledge to deal with…
China’s July activity indicators all miss expectations
Read More

China’s July activity indicators all miss expectations

Author of the article: BEIJING — China’s industrial output expanded 3.8% in July from a year earlier, slowing from a 3.9% rise in June, official data showed on Monday, as a nascent recovery in the world’s second-largest economy faltered. The growth was much weaker than a 4.6% increase that analysts had forecast in a Reuters…