U.S. Cotton’s Dominance in Turkey Facing Brazilian Pressure

ANKARA, TURKEY – Turkey’s cotton production is now estimated at 2.87 million bales 865,000 acres this marketing year (MY 2020/2021). According to the Foreign Agriculture Service (FAS), yields in the South Eastern (GAP) region has been better than expected due to favorable weather conditions. Low yields in the last few years, unattractive cotton prices, inflated costs, the uncertainty created by COVID-19, and better returns from alternative crops, in addition to low subsidies from the government and the third-year rotation rule are the major reasons for the decrease in planting areas. Cotton consumption in Turkey last year was estimated at 6.7 million bales and imports for the same period reached 4.7 million bales, a record high for recent years. The United States provided 38 percent (385,502 MT) of the total cotton imports to Turkey, followed by Brazil (191,307 MT), Greece (163,930 MT), and Azerbaijan (71,224 MT). If a vaccine for COVID-19 becomes widely available soon, changing consumer lifestyles and a better retail environment in Turkey, Europe, and the U.S.could lead to a dramatic increase in cotton imports. Market sources are reporting an uptick in Brazilian cotton imports based on more favorable prices from the South American competitor. Despite that, the FAS still expect the U.S. to remain the main supplier for the Turkish cotton industry in the short to medium timeframe.
(SOURCE: All Ag News)