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Australia: Output Down By A Third Next Year

Apr 24, 2019

According to the latest report by the us agricultural counselor, the yield of irrigated fields in Australia will decline in 2018/19 due to rising water prices and limited water resources, while dryland fields are also adversely affected by the lack of rainfall and insufficient soil moisture, which will continue to be the case.

Rainfall across Australia's cotton-producing regions has been well below historical averages for most of 2018 and through 2019, especially as extreme heat in December and February has prevented dry land from being sown.

According to the Australian bureau of meteorology, dry and hot weather will continue to be maintained in Australia in 2019, but there will be relatively timely and appropriate rainfall distribution, which will help expand the area of dry land, and the increase in water prices may continue to restrict the area of irrigated fields.

Australia is expected to plant 300,000 hectares of cotton in the 2020/20 year, flat year-on-year, due to a decline in yield per unit area, cotton production is expected to be 2.2 million bales, down 4% year-on-year.

Australian cotton exports are expected to be 2.4 million bales in 209/20, down 33 per cent year-on-year, due to lower production and inventories.

In the period of significant cotton production, Australian cotton can be used to export inventory.