According to statistics, the Brazilian cotton planting area in 2018/2019 is expected to increase by 5% to 1.2 million hectares, which is the highest level since 2012, mainly due to the rebound in cotton prices, increase in production income and increase in domestic demand. The 2018/2019 annual cotton production is expected to be 1.95 million tons, an increase of 3.4% over the previous year, and cotton exports are expected to increase to 1 million tons.
From January to March 2018, Brazil's domestic cotton prices rose sharply, and the cotton price index rose by nearly 20%, an increase of 10% over the same period of last year. The main reasons for pushing up the domestic cotton price in Brazil are mainly due to the recovery of domestic economy in Brazil, the increase in crude oil prices, the stimulation of cotton consumption, and the expected increase in global consumption. Brazil's cotton consumption is expected to increase by 4% to 5% in 2018.
Brazilian cotton exports in 2017/2018 are forecast at 958,000 tons, of which Indonesia, Vietnam, Bangladesh and Turkey have strong demand. From August 2017 to February 2018, Brazil exported a total of approximately 812,000 tons of cotton.
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