Cotton production in Brazil is expected to increase by 16 per cent. This is the result of an increase in productivity per hectare at 13 per cent and an increase in area by two per cent.

For the time being, the weather has been favouring both the planting and the development of the crop. Cotton producers, however, remain focused on higher production costs, especially of fertilizers. At the beginning of the crop season and due to higher cotton availability, the pace of trade is expected to increase. Some purchasers are already interested in guaranteeing the product of the next crop through contracts.

Consumption in the 2022-23 season is expected to be up two per cent from 2020-21.Ending stocks in Brazil were 1.34 million tons in December 2022, the lowest since 2018-19 and may sustain prices until the beginning of the next season. In December 2023, on the other hand, ending stocks are expected to be at 1.614 million tons, the highest since 2019-20. Shipments from Brazil from August 2022 to July 2023 are expected to be up seven per cent compared to the season before and the third highest in history.

However the cotton area in Brazil may be affected by the possible downturn of the world economy because of inflation and Covid cases in China.