growers@sgcotton.com.au Roger Tomkins - Greenmount Press
growers@sgcotton.com.au Roger Tomkins - Greenmount Press
growers@sgcotton.com.au Roger Tomkins - Greenmount Press
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WORLD COMMODITY WATCH<br />
India<br />
Speculation around the possibility of another export ban continues as<br />
a government official crop numbers are released in August which may<br />
provide insight into a likely policy change. With delayed monsoonal rains,<br />
there has been much conjecture over this nation’s production. Various<br />
sources indicate a crop of 31–32 million (170 kg) bales, but concerns<br />
persist around the ongoing dry conditions prevalent in the state of Gujarat.<br />
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chain in the Australian cotton industry.<br />
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China<br />
Rumours continue to swirl around the possible<br />
additional release by the Reserve of 400,000<br />
million tonnes of processing quota. This quota<br />
would take the form of an export incentive and be<br />
available to mills only (not trading <strong>com</strong>panies).<br />
Downstream demand from mills remains slightly<br />
weak to stable, but most in the trade still feel the<br />
potential for further downward revisions to the<br />
USDA’s Chinese consumption figure. The 2012–13<br />
Reserve Procurement Program is scheduled to<br />
<strong>com</strong>mence again in September at a 4% price<br />
increase over last year.<br />
Australia<br />
Information exchanges at the Cotton<br />
Conference confirmed sentiments around<br />
decreased dryland acreage for next cotton<br />
crop in Australia, with early dryland acreage<br />
estimates suggesting a 55% drop year on<br />
year. Irrigation cotton acreage may too<br />
be slightly down for the up<strong>com</strong>ing crop,<br />
with the biggest decreases being forecast<br />
in Central Queensland, the Darling Downs<br />
and Southern NSW. North-western cotton<br />
growing regions of NSW remain relatively<br />
<strong>com</strong>mitted to cotton given the full profile of<br />
water storages and lack of gross margins<br />
and yields in alternative crops. All being<br />
said, at this early stage we look set to<br />
produce another healthy sized crop, around<br />
3.8–4 million bales.<br />
* Ex-gin price bids and basis for<br />
middling 1 1/8 inch cotton<br />
55 Wyandra Street, Newstead<br />
Queensland Australia 4006,<br />
Tel: 61 7 3250 3300<br />
Fax: 61 7 3852 1600