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Cotton & products Qtly lock-up report 2007

13 Mar '07
3 min read

Production:
The forecast for total cotton production for 2006/07 has been reduced to 1.0 million bales, or about 227 TMT. If achieved, this crop would be more than 60 percent below the previous year level.

Severe drought has seen some crops abandoned while other crops received lower than optimal irrigation water. Industry sources suggest in some of the worst affected areas, as much as 40 percent of planted area may have received less than optimal water. Lower production will likely result in lower ending stocks and lower exports.

Yield:
The forecast of 1.0 million bales (or 227 TMT) harvested from 143,000 hectares assumes an average yield of 1.58 MT per hectare, just under the 10-year average of 1.65 MT per hectare. Industry sources report some crops to have suffered from reduced water allocation and will likely yield less cotton as a result.

Exports:
Australian cotton exports for CY 2006/07 are forecast to fall to 458,000 MT (2.0 million bales). Post does not anticipate reductions below this level are likely as majority of the 2006/07 shipments are from cotton harvested from the 2005/06 crop.

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United States Department of Agriculture Foreign Agricultural Service

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