Brazil: Cotton Lint Market 2024

Cotton Lint Market Size in Brazil

In 2022, the Brazilian cotton lint market was finally on the rise to reach $X for the first time since 2019, thus ending a two-year declining trend. In general, consumption recorded a relatively flat trend pattern. Cotton lint consumption peaked at $X in 2019; however, from 2020 to 2022, consumption stood at a somewhat lower figure.

Cotton Lint Production in Brazil

In value terms, cotton lint production reduced slightly to $X in 2022 estimated in export price. Over the period under review, production saw slight growth. The most prominent rate of growth was recorded in 2018 with an increase of 37% against the previous year. Over the period under review, production attained the maximum level at $X in 2019; however, from 2020 to 2022, production failed to regain momentum.

In 2022, the average cotton lint yield in Brazil skyrocketed to X tons per ha, increasing by 24% against 2021 figures. Over the period under review, the yield continues to indicate a relatively flat trend pattern. The cotton lint yield peaked at X tons per ha in 2020; however, from 2021 to 2022, the yield failed to regain momentum. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, the total area harvested in terms of cotton lint production in Brazil rose markedly to X ha, picking up by 9.6% against the previous year's figure. In general, the harvested area continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2019 when the harvested area increased by 41%. Over the period under review, the harvested area dedicated to cotton lint production attained the maximum at X ha in 2020; however, from 2021 to 2022, the harvested area failed to regain momentum.

Cotton Lint Exports

Exports from Brazil

In 2022, overseas shipments of cotton lint decreased by -10.6% to X tons, falling for the second consecutive year after four years of growth. In general, exports, however, enjoyed a buoyant expansion. The pace of growth appeared the most rapid in 2019 with an increase of 66%. Over the period under review, the exports reached the peak figure at X tons in 2020; however, from 2021 to 2022, the exports remained at a lower figure.

In value terms, cotton lint exports rose notably to $X in 2022. Over the period under review, exports, however, posted a remarkable increase. The pace of growth was the most pronounced in 2019 when exports increased by 57% against the previous year. The exports peaked in 2022 and are expected to retain growth in the near future.

Exports by Country

China (X tons), Vietnam (X tons) and Pakistan (X tons) were the main destinations of cotton lint exports from Brazil, together accounting for 57% of total exports. Bangladesh, Turkey, Indonesia, Malaysia and South Korea lagged somewhat behind, together comprising a further 39%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Bangladesh (with a CAGR of +37.0%), while the other leaders experienced more modest paces of growth.

In value terms, the largest markets for cotton lint exported from Brazil were China ($X), Vietnam ($X) and Bangladesh ($X), together comprising 58% of total exports.

Bangladesh, with a CAGR of +36.9%, saw the highest rates of growth with regard to the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average cotton lint export price stood at $X per ton in 2022, with an increase of 21% against the previous year. Over the period under review, the export price showed a relatively flat trend pattern. As a result, the export price reached the peak level and is likely to continue growth in the immediate term.

Average prices varied noticeably for the major export markets. In 2022, amid the top suppliers, the countries with the highest prices were Turkey ($X per ton) and Indonesia ($X per ton), while the average price for exports to Malaysia ($X per ton) and Pakistan ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Turkey (+0.8%), while the prices for the other major destinations experienced more modest paces of growth.

Cotton Lint Imports

Imports into Brazil

After two years of growth, purchases abroad of cotton lint decreased by -46.4% to X tons in 2022. Overall, imports continue to indicate a pronounced curtailment. The growth pace was the most rapid in 2016 when imports increased by 1,148%. Imports peaked at X tons in 2017; however, from 2018 to 2022, imports failed to regain momentum.

In value terms, cotton lint imports reduced markedly to $X in 2022. Over the period under review, imports saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 with an increase of 697% against the previous year. Over the period under review, imports attained the maximum at $X in 2017; however, from 2018 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, Argentina (X tons) constituted the largest cotton lint supplier to Brazil, accounting for a 58% share of total imports. Moreover, cotton lint imports from Argentina exceeded the figures recorded by the second-largest supplier, the United States (X tons), threefold. The third position in this ranking was held by Egypt (X tons), with an 8.9% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Argentina stood at +3.3%. The remaining supplying countries recorded the following average annual rates of imports growth: the United States (+0.8% per year) and Egypt (-10.0% per year).

In value terms, Argentina ($X), the United States ($X) and Egypt ($X) were the largest cotton lint suppliers to Brazil, together accounting for 85% of total imports. Israel, India and Spain lagged somewhat behind, together comprising a further 15%.

Among the main suppliers, India, with a CAGR of +121.1%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the average cotton lint import price amounted to $X per ton, jumping by 43% against the previous year. In general, import price indicated a tangible expansion from 2012 to 2022: its price increased at an average annual rate of +2.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, cotton lint import price increased by +30.6% against 2019 indices. The growth pace was the most rapid in 2019 an increase of 43% against the previous year. Over the period under review, average import prices reached the peak figure in 2022 and is expected to retain growth in years to come.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Spain ($X per ton), while the price for Egypt ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by India (+11.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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