The Australian Cotton Association recently revealed that although the Australian cotton output reached 55.5 million bales this year, Australian cotton farmers will sell out the 2022 cotton in a few weeks. The association also said that despite the sharp fluctuations in international cotton prices, Australian cotton farmers are ready to sell cotton in 2023.
According to the statistics of the Association, up to now, 95% of new cotton has been sold in Australia in 2022, and 36% has been pre-sale in 2023. Adam Kay, CEO of the Association, said that considering the record Australian cotton production this year, the escalation of the conflict between Russia and Ukraine, the decline of consumer confidence, the rise of 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 of American cotton production and the extremely low inventory of Brazilian cotton, Australian cotton has become 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 recent Australian cotton conference that the demand of Vietnam, Indonesia, India, Bangladesh, Pakistan and Türkiye is increasing this year. Due to the supply problems of competitors, Australian cotton has the opportunity to expand the export market.
The Australian Cotton Merchants Association said that the export demand of Australian cotton was very good before the cotton price fell sharply, 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 face some difficult periods. The buyer may cancel the high price contract at the early stage. However, Indonesia has been stable and is currently the second largest market for Australian cotton exports.
Post time: Oct-15-2022