Feb 04, 2022

Mato Grosso's Cotton Acreage Up 15%, Production Up 18%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Farmers in Mato Grosso are expected to plant 1.1 million hectares of cotton (2.7 million acres) in 2021/22, which would represent an increase of 15% compared to last year according to the Mato Grosso Institute of Agricultural Economics (Imea). The 2021/22 cotton production in the state is expected to increase by 18% compared to last year to 2 million tons. Mato Grosso is Brazil's largest cotton producing state followed by the state of Bahia in northeastern Brazil.

As of January 28th, farmers in the state had planted 69% of their intended cotton acreage compared to 31% last year and 63% average. Virtually all the cotton in Mato Grosso is grown as a safrinha crop after the soybeans are harvested. Farmers who intend to plant a second crop of cotton usually plant early maturing soybeans with 90-100 day maturity. The soybeans are planted as soon as the soybean-free period in the state ends on September 15th. That allows the soybeans to be harvested in early January allowing ample time to plant the second crop of cotton.

Cotton prices are very attractive and farmers have invested heavily in inputs aiming to maximize their yields. The farmers in Mato Grosso have forward contracted approximately 60% of their anticipated cotton production, which is close to the historical average. They have also forward contracted 12% of their anticipated 2022/23 production, which is greater than the historical average for this time of the year.