Brazil cotton boom forecast for 2024-25.

A new report predicts a significant increase in Brazil’s cotton production for the upcoming season (MY 2024-25). Planted area is expected to grow 13 per cent to a record 1.87 million hectares, driven by attractive cotton prices compared to corn. This could result in a record cotton yield of 15.4 million bales (3.3 million metric tons).

However, a potential El Niño year might bring adverse weather conditions, leading to slightly lower yields compared to the current season. Despite this, cotton exports are still expected to reach 10.5 million bales (2.3 million metric tons), though slightly down from the previous year due to increased global competition.

Domestic cotton consumption is expected to remain stable at around 3.5 million bales (0.76 million metric tons). With higher production and slightly lower exports, ending stocks for MY 2024/25 are forecast at 7.6 million bales (1.7 million metric tons).