Australia: Cotton and Products Annual

Cotton production in Australia is primed to set a new record of 6 million bales in MY 2022/23, after a bumper harvest estimate of 5.5 million bales in MY 2021/22. This forecast is due to the strong prospect of increased irrigation water availability at the start of planting in October 2022 along with current high cotton prices and strong futures prices. These conditions are expected to result in an eight percent forecast increase in area, mainly irrigated. Many irrigated cotton production regions have had an extraordinarily high spring/summer rainfall period that has resulted in a highly unusual situation of irrigation water storage dam levels being higher near the end of the summer crop irrigation period than at the start of cotton planting, and dams are at or near capacity. Exports are forecast to increase to 5.8 million bales in MY 2022/23, reaching a near record result.