SAO PAULO (Reuters) - Brazil’s agricultural agency Conab said on Wednesday that farmers in the country may increase areas planted with cotton as prices for the fiber are rising, according to a presentation.
In a document containing the outlook for agricultural products ranging from grains to dairy products, Conab said it has seen cotton prices at 76 reais per arroba ($24.39/per 15 kg), which may be an incentive for farmers to grow it in the 2017/18 crop season.
Conab also said areas planted with soybeans are expected to increase in the country, despite a large global surplus of the commodity, without providing additional information.
The agency said some farmers are likely to swap corn for soybeans during the Brazilian summer, citing higher profitability for the oilseed compared with the cereal.
Conab stopped short of releasing its first grain production forecast for the 2017/18 crop season, saying those figures will be released in October.
Reporting by Ana Mano and Marcelo Teixeira; Editing by W Simon and Paul Simao