Brazilian cotton exports may increase by 42.4% in 2011

In early 2011, the seller was very optimistic about the price of cotton, and in March domestic and foreign market quotations hit a record high. This led to the expansion of cotton acreage and global supply. However, the demand did not follow up. Due to the high price of cotton trade, cotton buyers are looking for cheaper alternatives.

As a result, the demand for man-made fibers has increased, reducing the demand for cotton yarn. Cotton prices fell, but the purchase of natural fibers, such as cotton, did not expand as quickly as expected.

In the first three months of 2011, prices in the domestic and international markets strengthened and reached a record high in March, although liquidity was low. During this time, agents do not know which of the limited quotes can be traded.

Prices rose sharply until mid-March because of increased consumption. In 2009/10, the main producing countries reduced their acreage and the world's inventories shrank.

In the second half of March, the quotations were high, causing buyers to withdraw from the transaction and suppressing the price drop in the domestic market.

In April, the price fell by as much as 24.35%, according to the report of the Brazilian Center for Applied Economics Research, which was the largest month-to-month decline since data research began in July 1996.

It is expected that the global supply will increase and cotton prices will be suppressed. Until mid-2011, weather problems in many parts of the world, including Brazil, have led to uncertainties in world production. At the same time, the demand has stabilized.

From the second half of 2011, cotton prices have changed three times in more than one month. In the last three months, the demand for cotton in Brazil and the world slumped and prices fell.

According to the National Grain Supply Corporation report, in 2010/11, Brazil's cotton planting area increased by 67.6% to 1.4 million hectares. The yield increased by 2% to 1400 kg/ha. Therefore, the 2010/11 Brazilian cotton production increased by 64% to 1.96 million tons.

Brazil's exports may reach 730,000 tons, an increase of 42.4% over 2010 exports.