Brazil To Become 2nd Largest Cotton Exporter In 2018/19

Economy

Brazil To Become 2nd Largest Cotton Exporter In 2018/19

Brazil could become the world's second largest cotton exporter in the 2018/2019 crop cycle, jumping ahead one position to surpass India in the global rankings, Brazilian trade group Abrapa said.

Brazil is expected to export 1.12 million tonnes of cotton lint in the 2018/19 harvest, which would place it second to only the United States, Abrapa's executive director Márcio Portocarrero said.

The US-China trade war is set to directly benefit Brazilian cotton growers, with Chinese cotton processors indicating they would buy up any additional supply of cotton that Brazilian farmers can produce, Portocarrero said. He did not elaborate on which Chinese companies had made the "verbal commitment" to buy Brazilian cotton or when it happened. China slapped a 25% tariff on US cotton imports, among a raft of duties that took effect in July in response to tariffs announced by US President Donald Trump.

Brazil's overall production is expected to rise to 2.3 million tons of cotton lint in 2018/19, from 2 million tons the prior season, according to Abrapa. Chinese demand will be driving growth in planted areas, with a record 1.4 million hectares of cotton expected next year seen growing to 2 million hectares by 2022, Portocarrero said.