Sep 13, 2021
Mato Grosso Cotton Production Down 23% Compared to Last Year
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Cotton farmers in Mato Grosso have harvested over 90% of their 2020/21 cotton crop and the harvest should be complete within two weeks. The cotton production this year is expected to be down 23% compared to a year earlier. Mato Grosso is Brazil's largest cotton producing state and the majority of cotton is grown as a second crop after soybeans.
The Mato Grosso Institute of Agricultural Economics (Imea) is estimating that the state will produce 1.6 million tons of cotton compared to 2.16 million tons last year. Farmers in the state reduced their cotton acreage in 2020/21 by 15% as they opted for more safrinha corn. Cotton and safrinha corn compete for the same acreage in the state, and since the soybean harvest was delayed due to late planting, some farmers switched their intended cotton acreage to safrinha corn instead. Additionally, domestic corn prices were stronger compared to domestic cotton prices.
The cotton yields in the state are down approximately 9% compared to last year due to dry weather in parts of the state.
Farmers in the state have sold 79% of their 2020/21 production compared to 77% average for this time of the year. Farmers have been less aggressive in their forward contracting of the 2021/22 crop. They have forward contracted 34% of their anticipated 2021/22 production compared to 36% last year and 40% average.