MUMBAI (Commoditiescontrol) - The USDA in its latest Global Agriculture Information Network (GAIN) report, projected Australia’s 2015-16 cotton production at 2.2 million bales (480 lb each), Up From 2.1 million bales in 2014-15.
The harvest area for cotton in 2015-16 is expected to be stable at 2.10 million hectares, the USDA report stated. Assuming average rainfall, yields should be maintained at 2.2 tonnes or 10 bales per hectare for irrigated regions and 3-4 bales per hectare for dryland cotton production. One third of cotton production occurs in Queensland and two thirds in New South Whales (NSW) and both crops were affected by hot and dry conditions during the 2014 planting season. Average rainfall is needed in the 2015-16 planting window from September 2015.
Incentives for Australian cotton growers are changing. The falling world price for cotton has been partly offset by the depreciation of the Australian dollar, but higher prices for alternative crops such as sorghum could be expected to constrain cotton plantings well below the records of previous years, as per the USDA. The large stockpile held in China is another variable affecting future prices.
Cotton exports from Australia are forecast to be 2.1 million bales in 2015–16, down one third compared to 3.4 million bales in 2014-15. Australia exports around 95 percent of its raw cotton, with China the leading market. However, China is reducing its import because of its high levels of stocks and a degree of uncertainty exists over future world cotton prices and China’s future import requirements.
Total cotton supply in the country is expected at 2.4 million bales, down from 3.9 million bales in 2014-15. The USDA expects Australia’s cotton ending stock at 0.68 million bales compared to 0.5 million bales.
(By Commoditiescontrol Bureau; +91-22-61391533)
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