October 27, 2010

Australia sees good cotton crop outlook

Cotton Australia is predicting a bumper crop this year, upgrading its production forecast for the largest crop in a decade.

Chief executive officer Adam Kay says 3.67 million bales of cotton will be grown this year, generating about AUD2 billion (US$1.94 billion) in export income.

With the crop only just planted, Kay says growers are optimistic about the yield and current prices are offering longer term optimism.

"We know at this stage that more than 80% of the estimated production for the coming season has already been forward sold," he said.

"Many growers, where they've got good water outlook for the coming seasons have sold two or three years ahead to take advantage of the good price outlooks," he added.