Australia: Drought Remains
11 December 2007 Soil moisture in some growing areas has improved, although this will be more likely utilized for the planting of sorghum, as the majority of cotton growers are not expected to risk planting cotton if an irrigation water supply cannot be guaranteed.
Over the longer term, industry sources believe that production levels will increase substantially. However, those levels are not likely to return to their high point before the drought in 2002/03 as long as grain prices remain at high levels.
Production Slump
Australian production for 2007/08 is forecast at 455,000 bales, driven by a lower planted areas and a slightly lower yields. This level of production would be the lowest since 1982/83.
The area planted to cotton in 2007/08 is estimated to be 56,000 hectares, the lowest planted area since 1978/79.
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