Management Report 2020
Management Report 2020
Figure 6
SLC Agrícola
Million bales
U.S. cotton shipments to China
(annual volume committed in last week
of January of each year)
2.0
2.1
1.6
1.7
4.5
2017
Source: USDA
2018
2019
2020
2021
Figure 7
Estimate of cotton production in
United States for 2020/21 crop year
Combined with the high volumes of U.S. cotton purchased by China,
the scenario of downward revisions to production forecasts in the
United States, in which unfavorable weather reduced the crop's out-
put by approximately 20% in relation to initial estimates, also was a
key catalyst for the structural changes in the cotton price in New
York during the year.
The reduction in U.S. production, combined with the expectation of
stability in global consumption of the fiber, has been an important
factor sustaining cotton prices. The global supply-demand balance
should close the current cycle with a shortfall of approximately
2.9 million bales, according to USDA estimates.
Regarding exports in Brazil, the volumes shipped maintained their
upward trend over the year, especially in the last quarter, when rec-
ord monthly shipments were responsible for sustaining and consol-
idating the country's position as the world's second largest cotton
exporter.
Brazilian exports ended the year at 2.1 million tons, approximately
30% higher than in 2019.
Million bales
19.50
17.50
17.05
14.95
May
Report
July
Report
October
Report
January
Report
Source: USDA
20% reduction in the U.S yield compared to initial estimates
catalyzed structural changes in cotton prices in New York
21
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