Australia sold out its cotton harvested in 2009/10

Australia is the world’s third-largest cotton exporter. An industry source stated that Australia has almost sold out its 2009/10 harvest of cotton because of the surge in global demand. The largest consumer country is China, and the world’s inventories remain tight.

As the ratio of inventories to consumption has fallen to the lowest level since 1989/99, global cotton prices have been rising all the way, and the International Cotton Advisory Committee predicts that prices will increase by 15% in 2010/11.

So far this year, the ICE US Futures Cotton benchmark December cotton contract has risen 17%.

Insiders say that by the end of this month, Australian stocks will be very low.

Australia’s production in 2009/10 (July to June of this year) is currently estimated at 1.8 million bales, which is higher than the industry’s earlier estimate of 1.6 million bales.

Australian cotton is exported to countries such as China and Indonesia, but in recent months it has also been sold to Bangladesh.