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The 2020/21 cotton harvest in Bahia, one of the main lint-producing states in Brazil, is expected to show a drop of 13% in volume and 15% in area compared to the previous season, the Brazilian Association of Cotton Producers said this Wednesday. Cotton (Abrapa), citing pressure from better profitability generated by soybean and corn crops.
According to the entity, the cotton harvest in Bahia began on May 28th and should result in the production of 520,363 tons. The planting area was estimated at 266,662 hectares this season.
“This reduction is explained by the greater relative profitability of soybeans and corn, which guarantee greater liquidity, with lower production costs, even though lint prices… are at a level considered very good,” said the association in a note.
Cotton contracts traded on ICE for December ended this Wednesday at 87.34 cents per pound, the highest level since the end of February, given good demand and favorable weather conditions in important producing regions.
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Abrapa recalled, however, that during the sowing period the price was at a much lower level, around 60 cents on the dollar, which left soybeans and corn with an even greater advantage.
In a statement, the president of Abrapa, Luiz Carlos Bergamaschi, minimized the reduction in area and production of plume in Bahia, stating that the scenario reflects the sustainability and maturity of the local production matrix, which he sees as “varied and balanced depending on the Marketplace".
“Bahia only has one harvest, which makes the planting decision even more accurate,” added Bergamaschi. For 2021/22, he projects growth of 5% in the planting area.
The State leads cotton production in Matopiba – a region comprised of Maranhão, Tocantins, Piauí and Bahia. According to Abrapa, the 2020/21 Matopiba harvest should reach 587,067 tons, with planting on 305,351 hectares.
By: Gabriel Araujo | Notícias Agrícolas
