950825

Brazil imports of

US cotton fall

RIO DE JANEIRO: Brazilian imports of U.S. cotton fell by 137,000 bales (29,828 tonnes) in marketing year 1994/95 (August 1 to July 31) partly due to competition from lower-priced West African cotton, said a U.S. industry official.

"West Africa has consistently under-priced us," said Buxton Midyette, Latin America director for the Cotton Council International, which represents the U.S. cotton industry.

Brazilian imports of U.S. cotton fell to 200,000 bales (43,545 tonnes) in marketing year 1994/95, down from 337,000 bales (73,374 tonnes) in 1993/94, he said.

Brazil has now fallen to seventh from twelfth place in the ranking of clients of U.S. cotton, Midyette added.

Brazil has imported around 60,000 tonnes of cotton from Benin, Cameroon, Togo and the Ivory Coast so far this calendar year, a broker said.

"This cotton is replacing fine U.S. cotton," he said.

Another reason for the drop in U.S. imports is a financial crisis in Brazil's textile industry which has decreased demand and will lower cotton imports in general, traders said.

"Imports will fall in relation to the reduction in consumption, which will be pretty drastic," said a trader.

"We estimated consumption at 850,000 tonnes, but imports might not reach 750,000," he said.

Brazil produced 525,500 tonnes of cotton in 1994/95, according to the National Supply Company's last estimate.

Brazil's textile industry has been hit by competition from cheap Asian textiles and credit restrictions imposed by the Brazilian government as part of the real economic stabilization that have led to a drop purchases of clothing, traders said.-Reutre