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Record cotton output likely in 2011/12
Jul '11
Australia is likely to have second straight year of record output during 2011-12, according to the commodities report released by the National Australia Bank (NAB).

The report says high prices of cotton in the international market along with ample availability of water for irrigation this year is likely to encourage more sowing of irrigated cotton.

Australia is the third biggest cotton exporter in the world and the report estimates the country's cotton output could reach 4.8 million bales in 2011-12, if the yield is normal. In 2010-11, Australia harvested a record four million tons of cotton.

The NAB estimate is in tune with the Government's chief commodities forecast made a month earlier.

In Australia, the cotton sowing season begins in October and the cotton cultivators are presently preparing their fields as the outlook is positive with price likely to remain around US$ one per lb through the remaining half of 2011.

During the first quarter of 2011, cotton prices had touched the peak of US$ 2.27 per lb owing to supply constraints and robust demand from China, the top consumer of cotton.

According to the US Department of Agriculture (USDA) estimates, world cotton output could increase 7.5 percent in 2011-12. It says the relatively high returns witnessed by cotton growers in 2010-11 have led to a massive increase in global acreage this year.

The USDA forecast for 2011-12 also says that the world stocks-to-use ratio of cotton is expected to be the third lowest since 1994-95, pointing to an increase in demand.

Fibre2fashion News Desk - India

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