Australian cotton exports are expected to reach $3.5 billion this season. Michael Murray, General Manger, Cotton Australia, says, the country will produce around 5 million cotton bales this season.
The predicted record-breaking value will be the result of favorable seasonal conditions returning to many drought-affected production areas, and strong global prices equating to about $840 a bale.
Pete Jonhson, Cotton Analyst says, cotton marketers had successfully redirected exports to other markets after the Australian cotton industry was pulled into the fray of Chinese trade tensions in 2020, and exports to the key market effectively ceased.
COVID-related disruptions to supply chains have driven global prices to near-record prices this season. As much as 5 to 10 per cent of global cotton supply is caught up in logistic bottlenecks, rues Johnson.
Stuart Armitage, Cotton Grower, Cecil Plains adds, local growers were optimistic and capitalizing on high prices by locking in big supply contracts, though he was cautious about predictions for the rest of the season.
