Brazil Cotton Harvest Climax, Export Quotes Lower

According to foreign reports, Brazil's cotton harvest in Bahia is experiencing good weather. The average output per unit area of Brazil CONAB is 1770 kg / ha.

This year, the cotton planting area in Bahia is 332 thousand hectares, and cotton growers generally expect another bumper harvest this year.

The harvest in Mato Grosso will begin in July, and the unit yield is expected to be good.

The harvest in the state of Georgia has also reached a climax.

In April, Brazil's cotton export volume was 71 thousand and 800 tons, a year-on-year increase, of which 24 thousand tons were exported to China, and the total export volume was 373 thousand and 800 tons this year.

As new cotton is expected to get a bumper harvest, Brazil's main Asian port price is very attractive at present. The SM 1-1/8 cotton base in 10-12 months is 875 points, the M 1-1/8 grade cotton is 800 points, and it has a tendency to drop to 700 points. From now until the first half of 2021, the quotation is very low.

Brazil cotton quotes so low, on the one hand, the cotton harvest every year, the export supply is large, on the other hand, domestic warehouses can not store such a large amount of cotton, must export as soon as possible, otherwise it can not be saved.

In addition, cotton farmers are also in urgent need of funds to invest in warehouses and port construction and improve logistics, otherwise the cotton in the northern area will have to be pported to the southern port for shipment and export, while the storage fees in the southern port are very expensive and the logistics cost will be very high.

Market participants expect that if China's import demand decreases in August, cotton traders will step up sales promotion, and the Brazil Asian cotton quotas will bear more pressure.