Brazil'S Cotton Exports May Decrease In 07/08

An analyst at Safras & Mercado said Brazil cotton picking time lagged behind the plan, and cotton picking progress is about 63% this year, compared with 77% in the same period last year.

Because of the changeable weather of two cotton growing provinces, cotton picking is slow and more cotton is planted in colder areas.

Although harvest time is delayed, the quality of cotton will not be affected this year.

The reason why cotton picking time is delayed is that the temperature is relatively low, and some farmers grow late.

Brazil is the fifth largest cotton producing country in the world. Brazil's reputation has been greatly boosted by the WTO's prosecution of US cotton subsidies in 2002.

The Brazil national commodity supply company estimated the output in August. The cotton planting area in Brazil was about 1 million 80 thousand hectares in 2007-08, less than 1 million 90 thousand hectares in 2006-07, and the lint yield in 2007-08 is expected to reach 1 million 560 thousand tons, compared with 1 million 520 thousand tons in 2006-07.

Cotton planting area in Brazil will be reduced by 15% in 2008-09, because farmers are replanting soybeans and corn.

In addition, the US dollar weakened against Real in Brazil, and the peasants were not optimistic about exports.