Cotton production forecast at 0.5 million bales  (Australia)

Australian cotton production for the 2007-08 season is forecast at 500,000 (0.5 million) bales. This forecast represents a significant fall from previous estimates and reflects the lack of rainfall since early July.

It is estimated that about 60,000 hectares will be planted with cotton in 2007-08 and with a yield of around 8.32 bales per hectare (1.89 MT/hectare). According to historical ABARE data, a planted area of 60,000 hectares, if achieved, would represent the smallest cotton planted area in Australia since 1978-79. Estimated production for 2006-07 remains unchanged at 1,100 bales.

As the vast majority of Australia, cotton is grown under irrigation, the primary driver of production remains the availability of irrigation water.

Rainfall in the catchment areas and to a lesser extent the growing areas, during September and October will be critical to improving cotton production prospects. Key industry sources believe the opportunity for the Australian cotton industry to recover from drought in 2007-08 has already passed. Typically, the months of September and October are not likely to provide the type of weather conditions which would see production prospects greatly improve.