Brazil Cotton Output May Rise 13% Next Year Amid Price Rally
November 24, 2009 Bloomberg
Katia Cortes and Carla Simoes
Brazilian cotton output may rise 13 percent next year as rains boost yields and growers increase spending because of rebounding prices, an industry group said.
Brazil may produce as much as 1.35 million metric tons of the fiber in the crop that will be planted by January and harvested in July, said Haroldo Cunha, head of the Brazilian Association of Cotton Producers. Growers produced 1.2 million tons this year, he said today in an interview in Brasilia.
Cotton output in Brazil will rise next year as rains during planting boost yields and farmers buy more fertilizers to meet higher demand, Cunha said. Cotton prices may climb to 80 cents a pound in 2010, the highest in more than a year, prompting growers to plant areas previously used for corn, he said.
“Cotton crops suffered a lot because of rains this year” during the flowering stage and harvest, Cunha said. “We expect better weather and more investments to meet rising consumer demand,” he said.
Cotton for March delivery was little changed at 72.52 cents a pound at 10:36 a.m. on ICE Futures U.S. in New York. The price has gained 48 percent this year.
Brazil is the world’s fourth-biggest exporter, after the U.S., India and Uzbekistan, according to the USDA.
(Story found in original format here.)
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