In 2023, Australian cotton production will set a record and export sales will be

The Australian Cotton Association recently revealed that although Australian cotton production is as high as 55.5 million bales this year, Australian cotton farmers will sell out the 2022 new cotton within a few weeks. The association also said Australian cotton farmers were ready to sell the 2023 crop despite wild fluctuations in international cotton prices.

According to the association's statistics, as of now, 95% of Australia's new cotton has been sold in 2022, and 36% has been pre-sold in 2023. Adam Kay, CEO of the association, said that considering the record Australian cotton production this year, the escalation of the Russian-Ukraine conflict, the decline in consumer confidence, rising interest rates and inflationary pressures, it is very exciting that Australian cotton pre-sales can reach this level.

 

Adam Kay said that due to the sharp decline in US cotton production and the extremely low inventory of Brazilian cotton, Australian cotton is now the only reliable source of high-grade cotton, and the market demand for Australian cotton is very strong. Joe Nicosia, CEO of Louis Dreyfus, said at the Australian Cotton Conference held recently that the demand for Vietnam, Indonesia, India, Bangladesh, Pakistan and Turkey is increasing this year. Opportunity to expand export markets.

 

The Australian Cotton Merchants Association stated that before the sharp drop in cotton prices, the export demand for Australian cotton was very good, but then the demand in various markets gradually dried up. Although sales continued, the demand has dropped significantly. In the short term, cotton merchants will still face some difficult times, and buyers may cancel previous high-priced contracts, but Indonesia has been very stable and is currently the second largest market for Australian cotton exports.