Australian growers certain to sell cotton of 2022 despite market volatility
Despite global volatlity, Australian cotton growers are sure to sell their 2022 cro within weeks. Australia's cotton production this vear is an alfime high of about 5.5 milion bales, and with good prices per bale, farmers are looking forward to a positive economic retur and demand forcotton remains despite worsening conditions.
Cotton Compass, an interactive cotton marketing news service, forecasts that 95% of the 2022 crop is now sold and 36% of the 2023 crop isforward sales, considering the impact of rising interest rates and inflationary pressures on deteriorating consumer confidence and the impact ofthe Chinese economy. This is a nice result of the COVID lockdown policy and the Ukraine war.
Coton Australa chiet executive Adam ay said t was tmey o reect on d oba markers on Word Coton Day. "Drouaht has reduced us cottorproduction by 4 milion bales. and Brazl has low stocks, Australia is the only source of quality coton in the coming weeks and months. There sa silver ining in China's soft ban, it helps us Building valuable new buyer relationships while strengthening existing customer relationships.Thisyear we have again received strong support from Vietnam, Indonesia, lndia, Bangladesh, Pakistan and Turkey," he said.
There is a window of opnoruniv to se cofon to the woro. but ower prices mean timin is of the essence. ,oe Nicosia. vice presidentof louDrevfuss. told the recent Cotton Australia Conference.
Our peaks are at troughs, so we wll be able to meet demand while cotton stocks in the U.S. and Brazil are getting lower, and india is alsosuffering from floods. The most important decision is 'when' to sel, which has become a key factor " Nicosia added.
As President of the Australian Cotton Shippers Association (ACSA), Roger Tomkins understands the challenges and opportunities facingAustralian cotton. n textile market, except for polyester, cotton yarn is stllin demand. "We were well positioned until prices adjusted. Sincethen, demand has dried up in all markets. We are stil seling cotton. but the market is weak, They have been a stable market for a long timeand our market share is crowing too, The recent visit of the Australian delecation as part of the Acricuktura Trade and Market AccessPartnership (ATMAC) funding scheme has helped cement a relationship so important in global trade," Tomkins said.
Export Marketing Consultant Rob Cais ed the delegation. "ndonesia is Australia's 13th largest trading partner and the second largest exportmarket for Australian cotton. Feedback is that Australian coton is wel-received for its exceptional quality, sustainable growing practices andconsstently high quality, non-poluting fibre. Positive. The upside for us is that the two largest spinning mills in indonesia, both importantcustomers for Australian cotton exports, have recently expanded their capacity and they prefer our cotton, so there are some positive signs."
Over the next six months. ACSA wil work to increase demand for Australian cotton throuch market visits to Vietnam. Thailand. IndiaBangladesh and Turkey, as wel as a series of networking events with brands and supply chain partners. Because these coutries have bigproduction capability in fabric and textile, especially their circular kniting machines need good quality cotton yarns.