Australia cotton exports to touch one million tons this year

Australia cotton exports to touch one million tons this year

Australia is all set to almost touch a figure of one million tons in raw cotton exports to become the third largest exporter of raw cotton in the world, says the National Australia Bank (NAB) Agribusiness Rural Commodities Wrap report. It further said that recovery in cotton prices was likely to have acted as an incentive to production, with prices above historical average levels and more favorable than alternative crops.
However, dry-land cotton planting are minimal due to the extended and extreme drought conditions that impact growing areas. According to the report, the Australian dollar was forecast to track lower to 84 cents by the 2014 December quarter, which should provide further benefits to exporters. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is also predicting an easing off of exports this year to just below one million tons.