Jul 07, 2022
Lower Yields Expected as Cotton Harvest Starts in Mato Grosso
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Mato Grosso have harvested approximately 5% of their 2021/22 cotton crop and the Mato Grosso Institute of Agricultural Economics (Imea) is expecting the lowest cotton yield in five years. The crop was planted during the ideal window in January, but the weather turned dry during April and May as the crop was entering its reproductive phase.
Imea estimates that farmers increased their cotton acreage by 22% from 960,000 hectares in 2020/21 to 1,170,000 hectares in 2021/22 (2.8 million acres). Yields are expected to be down 3.4% from last year and the lowest yield in five years.
Farmers have already forward contracted 73% of their anticipated cotton production. Margins are tighter this year compared to last year and they are expected to remain tight for the 2022/23 crop as well due to higher input costs.
Conab estimates that the 2021/22 cotton acreage in Brazil increased 16.8% to 1.60 million hectares (3.9 million acres) and that cotton production will increase 19.2% to 6.91 million tons. The state of Mato Grosso will account for approximately 70% of Brazil's cotton production followed by the state of Bahia at 20%.