Australian Cotton On The Upswing

Avatar for Matt Hopkins By Scott C. Lucas|2 March 2006

With seasonal conditions finally improving, expectations are high for the 2005-06 cotton crop, which should at long last return to pre-drought levels last achieved in 2001-02. Current estimates put cotton lint production in 2005-06 at 590,000 metric tons (MT), up 10,000 MT from earlier forecasts, according to the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS).

Good falls of rain were recorded for February in the key cotton growing regions of northern New South Wales and Southern Queensland, although above average temperatures in January limited otherwise larger production increases.

Exports of cotton lint for 2005-06 are forecast at 595,000 MT, up 5,000 MT on previous figures. This increased production also is likely to create an increase in closing stocks following the 2005-06 season.