Cotton crop: Australian outlook positive with four million bales

Cotton crop: Australian outlook positive with four million bales

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A NATIONAL cotton crop of four million bales is expected this season.

This is almost double the 2.7 million bales harvested last year.

A lift in irrigation water ­allocations, full soil moisture profiles and good returns are behind the estimated jump in the cotton crop.

Cotton Australia chief executive Adam Kay said they were expecting a planting area of 520,000ha this season, up from 220,000ha grown in 2015-16.

Mr Kay said this crop estimate was slightly above average.

“Putting it in to perspective, the record cotton crop in 2012 produced 5.3 million bales,” he said.

However, Mr Kay said cotton plantings has been reduced due flooding in certain areas and the wet conditions preventing farmers from getting machinery on to paddocks in time.

In NSWΆs Macquarie Valley the estimated 40,000ha of cotton crop has been reduced to 25,000ha, due to the wet conditions.

While in the Lachlan, Murrumbidgee and Riverina ­regions the area has been reduced from 60,000ha to 45,000ha.

Mr Kay said there was plenty of water in dams now, so growers would be able to plan for next season.

And returns look promising with cotton prices sitting about $500 a bale at the moment, which Mr Kay said it was a “good price”.

Mr Kay said the price varied with global supply and demand — India and Brazil are expected to produce smaller crops than expected, providing an opportunity for Australia.

“A few things in the global market are holding the price stable,” he said.

Elders senior agronomist Heath McWhirter, from Griffith in NSW, said about 90 per cent of cotton was planted in his area by last week.

Mr McWhirter said planting was about 10 days behind because of the wet weather.

“In the Murrumbidgee Irrigation Area about 70 per cent of what we planned to plant has been planted, which is a bit less than last year,” Mr McWhirter said.

“It is purely because of the wet conditions, all the other elements like water availability and water cost and cotton price are in growers favour.”

Mr McWhirter said unseasonably cold conditions were also hampering growth of seed.

“The main thing keeping people growing cotton is that none of the other crops, like sorghum or corn, are competitive this year,” he said.

“Cotton prices are fantastic and water is cheaper.”

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