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    Australian Cotton Production Blowout &Nbsp, Will Reach Record Level.

    2010/11/20 11:35:00 68

    Cotton Production In Australia

    Adam Kay, chief executive of Cotton Australia, an industry service agency, said on Thursday.

    Australia

    Cotton production is expected to reach record levels.

    Cotton price

    Australian cotton crops will be harvested around April, due to the impact of soaring, ideal weather conditions and adequate irrigation.


    New works

    Cotton yield

    The growth will exceed the previous record of 819000 tons of seed crops as of March 31, 2001, and more than double the 387000 tons of the 2009/10 crop year, an increase of more than 1/4 over the 653000 weeks of official forecast in September.


    Australia is an important anti season cotton growing country, and also an exporter of cotton to the northern hemisphere countries including the United States, China, India and Uzbekistan.

    At the same time, Australia also exports cotton to Asian countries including China, Indonesia and Thailand. China imports more than half of Australia's cotton exports.


    Cotton production in Australia's 2007/08 crop fell to only 133000 tons a year, but this year's new cotton production will be more than six times this figure, which will enable Australia to regain the honor of the world's fourth largest exporter of cotton.

    Almost all Australian cotton output is used for export.


    Australia's Australian Bureau of Agricultural Resource Economics (Abare) will reassess the September production forecast in the December 7th crop report.

    The estimate is expected to increase substantially.


    Kay said in an interview, "I predict that this year's cotton planting area and the average annual crop yield of 2010/11 will exceed the level of 2000/01."


    He said that because of more rainfall in Australia in spring, soil moisture has been raised and irrigation water supply has been sufficient. Because of the high price of cotton, farmers want to sow all the land where they can grow cotton.

    The economic value of cotton is considerable.


    He added that "cotton growers have planted cotton in all areas where they can be planted."


    The reason Australia growers increase their cotton production is soaring international cotton prices.


    Cotton prices have doubled since July, hitting a record high of $1.51 a pound in November 9th, the lowest level since the US Civil War in 1860s, but the price has plummeted with other commodity markets since then, worrying that China will take more measures to cool its overheated economic growth, which may slow down the demand for raw materials.


    Soaring international cotton prices pushed up Australia's spot cotton prices last week, reaching the highest level of 770 Australian dollars per pack (227 kg).

    Kay said that the price fell to $575 per pack and fell by about 60 Australian dollars since Wednesday, but it has increased considerably compared to Australia's long-term average cotton price of 460 Australian dollars per package.


    He said that usually the price of 500 Australian dollars would make cotton growers happy, so the price became a "sensitive price", but most growers would hedge prices at the level of 520 Australian dollars.


    He said, "farmers have just sown the crops, and I don't want to predict the output too early to avoid any deviation, but based on the average yield per unit area, the output is expected to be a record."


    There are also weather factors that make Australian farmers happy.


    The Australian National Weather Service announced in early November that the Murray-Darling Basin in Queensland and eastern Australia hit a record high of fourth in 1-10 months, the most rainfall since 1974.

    The above area is the whole area of cotton sowing in Australia.


    National rainfall data show that as of January, the cotton production area will exceed the normal level of rainfall, indicating that the upland cotton planting will face a moderate growth environment, and increase cotton production will be a record opportunity.

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