Australian cotton is forecast to become the third most valuable export commodity in a year that also witnessed record export results in one month.
Official figures from the Australian Bureau of Agricultural Resource Economics Sciences (ABARES) reveal that in August 2022, nearly $866m of Australian cotton was exported – almost double the entire amount of cotton exported in 2020, just two years prior.
ABARES figures show $1.9 billion worth of cotton was exported in 2021 however from January to August 2022, $2.046 billion was exported, representing 562,270 tonnes.
The export results are positive for the Australian cotton industry despite supply and demand impacting the global cotton market this year, with cotton merchants reporting a reduction in yarn demand for apparel production.
Agri Direct Australia Director Eimear McDonagh said the cotton market was continuously moving.
“Inflationary pressures may be having an impact on demand, but we need to see data for Q1’23 to understand the depth of the impact,” Eimear said.
“The cotton market is a continuously changing and moving target – it’s such a volatile market.
“Logistic issues are easing, which means spinning mills are now receiving a more continuous supply, but they are still working through very highly priced contracts while the market level has moved lower, and yarn stocks build in inventory.”
To learn more about the price of Australian cotton and what influences it, download this fact sheet.
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