• Australian cotton conference
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Australian cotton conference 2014

Posted by Ruman on August 28, 2014

There were record 1800 people attended this years conference. Australan cotton industry was hit with some quality concerns and drought is causing 50% reduction for next year crop. Despite all the challenges, majority of all Australian growers attending the conference shows how resilient and dynamic our Australian cotton industry is. There were more than 30 presentations over 3 days, i have attached few presentation which reflects the current situation of Australian and Global cotton industry from trade perspective. Please let me know if you require any further information.

Few highlights 

  • Next years crop size estimated to be around 2 million bales (50% of this years production), unless we get heavy rainfall in the next 3-4 weeks. I will keep you updated as we progress with the plantation period.
  • Increasing number of farmers are producing cotton where they use to produce rice traditionally on the border of Victoria and NSW region, 2 new Gins started operating around the area to support the industry.
  • ACSA is debating if it will be industry standard to provide 100% HVI report to the mills from 2016 (No final decision yet, as it needs to be discussed with the farmers)
  •  Global market share for cotton fibre will improve due to lower prices and as the price gap between made fibre and natural fibre is shrinking
  • Good quality cotton is not widely available at the moment which is driving the market now. 


My personal view on the medium to long term, MSP(Indian minimum support price), US loan will stop farmers selling their cotton to the merchants/traders if it goes below .60c level, creating an artificial demand outside of China, which will support the Future price to .60-.70c level. Approx. 50% of the US crop is already committed, so If Chinese state reserve comes back in the market we should see a push towards .80c -.90c