August 17, 2012

Australia's cotton production to set record

As water availability boosts yields even as the planted area declines, cotton production in Australia, set to be the world's second-biggest shipper, may climb to a record.

The harvest may total 4.95 million bales in 2012-13, Rabobank International said in a report. Production was more than 4.5 million bales in 2011-12, an all-time high, it said. A bale in Australia weighs 227 kilogrammes (500 pounds).

Cotton fell 67% since reaching a record in 2011, reducing costs for clothing retailers including Gap Inc., as supply increased and slowing global growth hurt demand. The USDA on August 10 cut its outlook for global demand 0.8% to 108.16 million, 480-pound bales, while boosting the outlook for world stockpiles by 3.1%.