Friday, October 28, 2016

Cotton production should grow in 2016/17

São Paulo-Bahia should have a slight recovery in cotton production in 2016/2017, after a break this year due to the severe drought in the western part of the State, which holds up to 98% of the local culture.
At the beginning of this cycle were expected to 380,000 tons of feather. However, production in the year was only 235,000 tons.
"The lack of rain, and the repressed price internationally, and the stagnation of fiber consumption were the major problems faced in this crop and the main responsible for area reduction," says in a statement the Bahian Association of cotton Producers (Abapa).
In the evaluation of Crop consulting analyst & markets, Cezar Marques, the production in the State must vary between 235,000 tons to 250,000 tons of cotton.
"As there was a problem of climate, even with the reduction of the area, it is possible that the productivity is better," said Mahmood.
Crop analyst & Markets says many producers have migrated to the cultivation of soybeans and corn, with prices at high levels, to overcome the losses with drought and gain tight margin. "As we had a crop failure in Bahia, and a small break in the Mato Grosso, 5% to 10%, there was a replacement for soybeans and corn, which should be also in Mato Grosso", pointed out on 2016/2017.
The acreage shall be reduced by 234,200 acres to hectares, according 202,200 Abapa assessment.
Now, growers are Bahian fallowing, when they removed the plants still alive of the area of cultivation. This period began on 20 September and will until the day November 20 and has as objective the Elimination of pests, the example of the Boll weevil.
According to the Association, the incidence of the cotton boll weevil fell in 80% with a phytosanitary control campaign, reducing from 22 to 12 the number of applications.
Mato Grosso
In Mato Grosso, largest State producer of cotton in the country, is expected to reduce the planting area. In the period 2015/2016, 612,000 hectares of cotton were cultivated, with a production of 897,000 tons of feather.
For the next period, the Association Chairman Mato-grossense cotton producers (Ampa), Gustavo Piccoli, there is a tendency of reduction on account of tight profit margin.
The Association believes that the planting area will be of 601,000 hectares in 2016/2017.
With the reduction in acreage in the US production leaders, the national supply company (Conab) estimates that will be 976,200 hectares for planting cotton next year. The estimate is a production of 1.38 million tons of cotton during the period, retraction of 11.1% of the 1.65 million tonnes this year.
External scenario
In 2015, the world consumption exceeded production, that not occurred since 2009. Last year, 21,800,000 tonnes were produced, before a 23,600,000 consumption, according to the International Cotton Advisory Committee (IAC).
However, for Charles Marques of Vintages & markets, "even with the heated demand for cotton, the market has shown strength to operate above 71 cents per pound, which would be the first short-term resistance for the market gain strength".
DCI
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