Over the past few weeks, we’ve had several conversations with brands and retailers around concerns that there may be a shortage of Australian cotton currently available in the market.
After speaking with our merchant community, the reality is that the current challenge is not availability of Australian cotton, but rather the timing and pricing pressures currently impacting the global cotton market.
The Australia cotton crop is currently forecast at approximately 4.4-4.5 million bales for 2025/26 season, with picking almost complete and ginning now well underway. Around 20% of the crop has already been ginned, with larger shipment volumes expected to begin flowing into export markets from July onwards.
It is important to remember that the cotton takes time to move through the supply chain. From ginning and classing through to warehousing and shipping, it can take a minimum of around 60 days for Australian cotton to arrive into destinations such as Vietnam, depending on warehouse and shipping locations. Traditionally, peak shipment months for Australian cotton occur between June and October.
At the same time, global cotton prices have risen significantly over the past two months, with ICE Cotton Futures increasing from approximately 62c/lb to 87c/lb. View ICE Cotton Futures data. ICE Cotton Futures data is a global benchmark used to track and monitor cotton market pricing, trends, and supply-demand sentiment across the international cotton trade.
While merchants continue actively hesitant to purchase cotton at today’s prices, as spinning margins remain extremely tight and in some cases unprofitable.
In summary, the current market challenge is less about cotton availability and more about the increase global cost of cotton, combined with the lag between lint cotton pricing and yarn market pricing. As always, cotton operates within a global commodity market, with pricing and purchasing decisions influenced by broader market conditions.
If you are looking to connect your suppliers with an Australian cotton merchant, a list of Australian Cotton Shippers Association members can be found here. https://austcottonshippers.com.au/about-acsa/merchant-members
May 2026