Cotton lint sales in Mato Grosso are progressing slowly. In December, sales for the 2022/23 harvest reached 54.29% of the estimated production for the cycle, an increase of 1.78 percentage points compared to November.
According to the Mato Grosso Institute of Agricultural Economics (Imea), the reason for this is the devaluation of the fiber in recent months, which continues to discourage cotton farmers from closing new deals.
The average for the last five years for sales in December is 64.34%. When analyzing sales for the 2021/22 harvest, the same in December 2021 were at 59.97%.
Weather affects sales for the 2021/22 harvest
“Timid” progress is also seen in the sales of 2021/22 cotton lint. According to Imea, there were only 2.37 percentage points in December compared to November, reaching 87.78% of production.
“The smaller increase is due to the non-standard coloration observed in the fiber, due to the adverse weather conditions that affected a large part of the state’s crops”.
MT records first sales of 2023/24 cotton
In December 2022, Imea reveals, the first sales of cotton fiber for the 2023/24 harvest were recorded, reaching 3.62% of the expected production for the cycle.
However, Imea highlights that the percentage is “lower than the same period of the 2022/23 harvest, reflecting the producer’s behavior in waiting for more attractive prices to sell their fiber”. In December 2021, the first sales of cotton fiber had been 11.94% of the expected production.
Source: Canal Rural