Australian cotton crop ‘all but sold out’
07/10/2022
With a crop of around 5.5 million bales produced in Australia this year, the biggest on record, and with good prices per bale, farmers are expecting a positive economic return. “Conditions have deteriorated,” Cotton Australia said, “but there is still demand for our cotton.”
Industry sources have said 95% of the 2022 crop is now sold and 36% of the 2023 crop is forward-sold, in spite of falling consumer confidence, rising interest rates, inflationary pressures, the impact of China’s Covid-19 lockdowns and war in Europe.
Cotton Australia chief executive, Adam Kay, said it was timely on World Cotton Day, October 7, to reflect on the global market. “Drought has reduced the US cotton crop by four million bales and with Brazil stockpiles low, for the next few weeks and months Australia is the only source of quality cotton.”
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