Cotton sector starts the year with optimism

The accelerated pace of cotton lint consumption in the second half of 2020 generated a scenario of optimism among agents in the agricultural and industrial sectors. International prices are considered attractive, and the good volumes of contracts already concluded indicate that feather exports could maintain the record pace observed at the end of 2021 in 2020.

In general, Brazilian agents must continue to closely monitor the pandemic, the progress of vaccines to immunize Covid-19 and the developments in the recovery of the economy in Brazil and around the world. On the industry side, the concern is linked to uncertainties regarding the support/growth of demand throughout the entire chain, given the high level of unemployment, the fear of new restrictions to contain a “new wave” of covid-19 in the country, and the population's lower purchasing power.

What is currently happening is that Brazilian institutions and associations have sought to promote Brazilian cotton on the international market, in an attempt to diversify importers and increase the market share –, strengthening relations especially with Asian countries. USDA estimates indicate that Brazil could continue as the world's second largest exporter of feathers, with 2,18 million tons in the 2020/21 harvest, behind only the United States, which is expected to ship 3,27 million tons.