The neighboring country is close to overtaking the United States to become the world’s largest exporter of cotton.
Brazil became the world’s largest exporter of corn and soybeans as the size and quality of the US crop has fallen amid the drought, and is close to surpassing USA to become the world’s largest exporter of cotton.
According to Bloomberg, the difference in exports of cotton of the two countries is shrinking drastically amid the tBrazilian high seasonadding fiber to a growing list of crops where the United States is losing dominance.
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Brazil became the largest exporter of corn in the 2023 season and export leader of soybeans 10 years ago. Russia and the European Union surpass the United States in wheat exports. The United States and Brazil are the world’s largest cotton exporters, accounting for more than half of the global supply.
It is expected that USA export 12.5 million bales in the 2023-2024 season, but this estimate is likely to be reduced when the USDA update your forecast on September 12. Brazil is expected to ship 11.25 million bales.
Analysts expect the USDA to lower its forecast of exports due to the drought which has affected the harvest and worsened the fiber quality. Brazil is expected to continue increasing production and cotton exports in the coming years.
With corn prices falling, farmers may decide to move part of their acreage second crop from corn to cotton. At current prices, the margins in Brazil They are much better than those of the American farmers.
Source: Ambito
