Brazilian production and exports hit records in 2019

Cepea, January 7, 2020 – Brazilian cotton production increased for three consecutive seasons and hit a record in the 2018/19 crop. Thus, the international market was the alternative to flow the production in 2019. This season, Brazil continued as the fourth largest cotton producing country in the world and the second largest exporter, only after the United States.


In this scenario, the CEPEA/ESALQ cotton Index, with payment in 8 days, moved down 12.3% in 2019. Along the year, trades were limited in the spot market, due to the gap between asking and bidding prices and heterogeneous quality.


According to Conab (National Company for Food Supply), the Brazilian cotton production skyrocketed in the 2018/19 season, reaching a record, of 2.7 million tons, 36% higher than that in the previous crop. Production increased because of the area, which was almost 38% larger – yield, in turn, was 1.3% lower, in the same comparison. The faster trading pace in the domestic cotton market and higher profitability compared to other cultures boosted the Brazilian production.


Secex (Foreign Trade Secretariat) data shows that, from January to December, Brazilian exports totaled 1.61 million tons, 65% higher than in 2018 (974.12 thousand tons) and a record. The main destinations for the Brazilian product were China, Vietnam, Indonesia, Bangladesh and Turkey.




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