May 24, 2022

Cotton Production in Bahia Expected to be Down 5% to 10%

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

The 2021/22 cotton harvest in the state of Bahia in northeastern Brazil is getting started and the president of the Cotton Producers Association of Bahia (Abapa) indicated that cotton yields in the state may be down 5-10% compared to initial expectations due to a lack of rainfall in March and April. The dry weather hit the crop as the bolls were forming and the dry weather turned out to be more important than the excessive moisture the state received when the cotton was being planted.

The state is expected to produce 530,000 tons of fiber, which is down from the original estimate of 588,000 tons. Even with the lower production, cotton farmers in the state are expecting hefty profits from their cotton production due to high cotton prices.

Farmers have forward contracted 70% of their anticipated cotton production for prices between $0.80 to $1.20 per pound which will guarantee a profit even though production costs have increased.

Looking ahead to the 2022/23 cotton crop in the state, farmers are expecting production costs to increase, but many producers have already purchased their inputs for next year and many of the inputs have already been delivered to the producers.

Bahia is the second largest cotton producing state in Brazil after Mato Grosso.