Consultancy revises estimate for Brazilian cotton production

StoneX consultancy estimates that Brazil should produce 3.73 million tons of cotton in the 2025/26 crop. The scenario is one of high supply and firm domestic demand, sustained by lower input costs and greater competitiveness of the national textile industries. The projection was updated in October and brings a positive revision for the planted area in the country. Even with the slight reduction in Mato Grosso, the main producing state, the national performance is expected to remain high. According to the survey, Mato Grosso should decrease the cultivated area by about 90 thousand hectares, a drop of nearly 6% compared to the previous cycle. In Bahia, the expectation is for stability, with the area maintained similar to last season. Despite the regional adjustment, the consultancy points to a recovery in domestic consumption, driven by the lower cost of raw materials and the improvement in the competitiveness of the national industry. "The combination of lower prices and a more ...