Mar 22, 2022
Farmers in Mato Grosso Increase 2021/22 Cotton Acreage by 17%
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Mato Grosso is the largest cotton producing state in Brazil and farmers in the state increased their 2021/22 cotton acreage by 17% to 1.12 million hectares (2.77 million acres), which brings the acreage back to where it was two years ago.
According to the president of the Cotton Producers Association of Mato Grosso (Ampa), the cotton planting was delayed a little this year due to wet weather during January and February, but the crop is developing normally and they expect the state to produce 2.1 to 2.2 million tons of cotton.
Strong domestic cotton prices were the incentive for farmers to increase their cotton acreage. Farmers have forward contracted much of their anticipated production for US$ 0.80 to US$ 0.85 per pound, which guaranteed that farmers would make a profit on the sale. The spot price for cotton in Mato Grosso is now in the range of US$ 1.00 per pound.
Farmers are watching closely the prices of fertilizers for their 2022/23 cotton crop. Some fertilizer prices are now four times higher than they were for the 2021/22 crop and if that trend continues, farmers in the state may reduce their cotton acreage in 2022/23.
Most of the cotton in the state is produced as a second crop after soybeans are harvested and Mato Grosso accounts for approximately 71% of Brazil's cotton acreage. The second largest cotton producing state is Bahia in northeastern Brazil which is responsible for approximately 24% of Brazil's cotton acreage.