Australian cotton yields are expected to turn around in 2009

Recent rainfall in Australia's cotton-growing regions has been adequate to support the upcoming planting season. This is a positive sign for farmers who are preparing for the next cycle of cotton production. So far this year, Australia’s overall water storage capacity has increased by 5.9% compared to the same period last year. In New South Wales, which is one of the key cotton-producing regions, reservoir storage has reached 42.1%, up 13.6% from the previous year. Meanwhile, Queensland’s reservoirs are at 84.9%, reflecting a 12.7% increase year-on-year. These improvements in water availability are crucial for irrigation and will help sustain crop growth during the dry season. According to the U.S. Department of Agriculture, Australia’s cotton yield per unit area is expected to rebound from last year’s decline, reaching 128.3 kg per mu. With high global cotton prices and improved irrigation conditions, farmers are likely to expand the area under cultivation this season. The National Australia Bank forecasts that the 2010/11 cotton production will reach 520,000 tons, marking a 43.8% increase from the previous year—this would be the highest level in nearly five years. Since over 90% of Australian cotton is exported, this boost in production is good news for Asian importing countries, which rely heavily on Australian cotton for their textile industries. As demand remains strong and supply becomes more stable, the outlook for the global cotton market looks promising.