Cotton production in Australia, set to be the world’s second-biggest shipper, may climb to a record as water availability boosts yields even as the planted area declines, according to Rabobank International.
The harvest may total 4.95 million bales in 2012-2013, the bank said in a report today. Production was more than 4.5 million bales in 2011-2012, an all-time high, it said. A bale in Australia weighs 227 kilograms (500 pounds).
(For more, see: Australian farmers trek 18,000 miles in cotton picker quest)
Cotton fell 67 percent since reaching a record in 2011, reducing costs for clothing retailers including Gap Inc., as supply increased and slowing global growth hurt demand. The U.S. Department of Agriculture on Aug. 10 cut its outlook for global demand 0.8 percent to 108.16 million, 480-pound bales, while boosting the outlook for world stockpiles by 3.1 percent.
For more, see: Cotton Harvest in Australia Seen Climbing to Record on Water