Australia: Next Year'S Production Decline, Exports Reduced By 1/3

According to the latest report of the US agricultural counsellor, in 2018/19, the increase of water price in Australia and the limited water resources led to a decline in the yield of irrigated fields, while the dry land was also adversely affected by scarce rainfall and insufficient soil water. This situation will continue.

In most of 2018 and since 2019, rainfall in Australia's cotton producing areas is much lower than the historical average, especially in the -2 months of December. According to the Australian Meteorological Bureau's report, in 2019, Australia continued to maintain dry and hot weather, but there would be timely and suitable rainfall, which would help to expand the area of dry land. And the rise in water price may continue to limit the area of irrigated fields. Australia's cotton planting area in 2019/20 is expected to be 300 thousand hectares, flat compared to the same period last year. The cotton output is estimated to be 2 million 200 thousand packages, down 4% from the same period last year.

Australian cotton exports in 2019/20 are expected to be 2 million 400 thousand packages, down 33% over the same period last year, as output and inventories declined. Cotton can be exported in inventory at a time of significant reduction in cotton production.