Brazil: Cotton and Products Annual
Post forecasts Brazil’s 2019/20 marketing year (MY) cotton area to reach 1.65 million hectares (ha), an increase of 5 percent compared to the current MY estimate of 1.57 million ha. Post forecasts that 2019/20 production and exports will top current records, at 12.5 million bales and 7 million bales respectively. Nevertheless, both in 2018/19 and 2019/20, Brazilian producers are expected to face greater costs and lower prices than during the previous season. Political risk should continue to have notable impact on the exchange rate and therefore commodity prices in Brazil.
