Australian Cotton Association has revealed that although this year's Australian cotton production up to 55.5 million bales, but the Australian cotton farmers will be sold short in a few weeks 2022 new cotton. The association also said that despite the sharp fluctuations in international cotton prices, but Australian cotton farmers are ready to sell cotton in 2023.
According to the association's statistics, so far Australia's new 2022 cotton has been sold 95%, 2023 has been presold 36%. Association CEO Adam Kay said, considering this year's record Australian cotton production, the escalating conflict between Russia and Ukraine, falling consumer confidence, rising interest rates and inflationary pressures, Australian cotton pre-sales can reach this level is very encouraging.
Adam Kay said the market demand for Australian cotton is very strong due to the significant decline in U.S. cotton production and extremely low Brazilian cotton stocks, which now makes Australian cotton the only reliable source of high-grade cotton. Louis Dafoe CEO Joe Nicosia said at the recent Australian Cotton Conference that demand is increasing in Vietnam, Indonesia, India, Bangladesh, Pakistan and Turkey this year, and there is an opportunity for Australian cotton to expand its export market due to supply problems from competitors.
Australian Cotton Merchants Association said that the current cotton price plunge before the Australian cotton export demand is very good, but then the demand in each market are gradually dried up, although sales continue, but demand has dropped significantly. In the short term, cotton traders will have to face some difficult times, the buyer may cancel the previous high-priced contracts, but Indonesia has been very stable, is now the second largest market for Australian cotton exports.