High yields despite bale price slip

Cotton Australia general manager Michael Murray, said the peak body was expecting 2.4 million bales nationally this year, similar to the amount produced last year.

“It is on the lighter side of our expectations, because we would like to see three million bales, which is the long term average,” Mr Murray said. 

“We are hearing good yields, around 14 to 16 bales in some regions, but we think the seasonal average could be 10 bales to the hectare across NSW.”

Of course the total area sown was restricted due to limited water, a position Mr Murray said was concerning for all irrigators.

Mr Murray said current bale prices from $450 a bale to $460 were below the values earlier in the season, when cotton reached $540.

“Growers are adept at forward selling their crops,” he said.

“Most of this year’s cotton crop should have been sold at around $500 a bale or better, so with current prices growers should average more than $480 per bale.”

Cotton Australia regional manager Paul Sloman, Narrabri, said $500 was the current trigger for growers who hadn’t yet committed their crop.

“Dryland growers are always hesitant about forward selling until they are certain of their yield,” Mr Sloman said.

“Growing conditions have been excellent, with a hot summer, so long as you had water you were fine, and we had a good cool finish.”

Cotton Australia regional manager Honi Anderson, Riverina, said the south experienced a “textbook season”.

“Other than a few storms at the beginning of the season which hit a few crops, we had a very hot summer and a cool finish,” she said. 

With 53,000ha sown, Ms Anderson said total area was on par with expectations, although Hillston growers were restricted in their plantings due to low water allocations from the Lachlan River.

Ms Anderson said both yields and quality were good, with one grower near Darlington Point reporting yields of 12 to 14 bales a hectare.

“Combined with current yields, the south is an area which is just beginning to realise its potential as a major cotton producer,” Ms Anderson said.

Internationally, the positive news according to Mr Murray is that demand for Australian cotton is likely improve on last year.

“It is not by a huge amount but at least it is eating into the Chinese stockpile,” he said. 

“Australian cotton normally attracts a premium internationally and we are being helped by a weaker dollar.”