Cotton planted area is expected to decline in Brazil

The projections from Itaú BBA indicate that the planted area of cotton in Brazil tends to decrease in the 2025/26 season, a movement driven by market devaluation, increased production costs, and narrowing producer margins. According to the bank, despite the global advance in supply, especially with improved productivity in American crops, which compensated for part of the area reduction and maintained production close to 3 million tons, the economic context pressures planting decisions in the country. The institution highlights that China is also expected to increase its production, reinforcing the global supply for the 2024/25 cycle. Even with this increase, global consumption is expected to remain stable at 25.9 million tons, which supports higher final stocks. This scenario reinforces the perception of a supplied market and reduces the incentive for area expansion. In Brazil, the significant production of the 2024/25 crop will continue to influence the supply balance in ...