This season, Australian cotton exports are estimated to hit $3.5 billion. Cotton Australia’s General Manager, Michael Murray, estimates that the country will produce 5 million cotton bales this season.
The forecasted record price is the consequence of excellent seasonal circumstances returning to several drought-affected producing areas, as well as robust worldwide pricing of around $840 per bale.
Cotton marketers have successfully shifted shipments to other markets when the Australian cotton sector was brought into the fight of Chinese trade concerns in 2020, and exports to the important market virtually ended, according to Pete Jonhson, Cotton Analyst. COVID-related supply chain delays have pushed worldwide prices to near-record levels this season. According to Johnson, 5 to 10% of global cotton supply is stymied by logistical obstacles.
Local producers were bullish and profiting on high pricing by locking in large supply contracts, according to Stuart Armitage, Cotton Grower, Cecil Plains, however he was cautious about estimates for the remainder of the season.