Perspective of record production in Brazil

After at least two years of narrow yields, Brazilian cotton growers estimate a better scenario for 2007. Both the production and exports should increase. Moreover, the conditions of supply and demand in both the international and domestic markets are positives, supporting the prices.

The National Company for Food Supply (Conab) forecast the Brazilian cultivated area at 1.034 million hectares in the 2006/07 crop, an increase of 20.8 percent in relation to the previous one. In the state of Mato Grosso, the main national producer, the planted area should enlarge 33 percent, reaching 487 thousand hectares - a record.

According to the Conab, the Brazilian production should total 1.343 million tons, overcoming the figure of 1.309 million tons from the 2003/04 crop. In the state of Mato Grosso, the production should reach 695 thousand tons, another record.

In the global view, it was also estimated a higher production. According to ICAC (International Cotton Advisory Committee), the production of the 2006/07 crop should rise 1 percent over the previous season, from 24.66 million tons to 24.9 million tons.

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