Paraguayan Cotton Hits 30-Year Low

A small 2005/06 crop which is not expected to improve much in 2006/07 has resulted in the lowest cotton business in Paraguay since 1975/76. Severe drought and high temperatures between mid-December and mid-January paired with serious insect attacks (primarily the Alabama army bollworm and the boll weevil) caused low yields and significant quality problems for the country’s cotton, which typically has good staple length and micronaire, according to the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS).

Experts forecast Paraguay’s harvested area to drop to 210,000 hectares, the lowest of the past four years. However, the dispersion of expected planted area, among the private sector analysts, is wide. Some expect the planted area to be as low as 130,000 to 150,000 hectares, while the more optimistic believe it will be closer to 250,000 hectares.

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