Australian cotton yields are expected to turn around in 2009

Recent rainfall in Australia’s key cotton-growing regions has been adequate to support the upcoming planting season. This favorable weather pattern has helped replenish water reserves, which is crucial for a successful harvest. So far this year, Australia's total water storage capacity has increased by 5.9% compared to the same period last year. In New South Wales, the main cotton-producing region, reservoir levels have reached 42.1%, up 13.6% from the previous year. Meanwhile, Queensland, another major cotton basin, now holds 84.9% of its storage capacity, a 12.7% increase year-on-year. According to the U.S. Department of Agriculture, Australia’s cotton yield per mu is expected to rebound from last year’s decline, reaching 128.3 kg/mu this season. With high global cotton prices, ample irrigation supplies, and rising productivity, farmers are likely to expand the area under cultivation. 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 output in nearly five years. Given that 90% of Australian cotton is exported, this growth is positive news for Asian countries that rely heavily on Australian cotton imports. The improved supply could help stabilize prices and meet growing demand in the region.