Cotton production 2020-21

The global cotton crop is forecast to fall by 2.8%, driven by an anticipated fall in the price of cotton. Reduction of the cotton price is due to a combination of cotton mill interruptions during 2020, coupled with low oil prices and competition from synthetic fibre. Alternate summer crop plantings in large cotton producing countries such as the United States and Pakistan is another key factor in reduction of cotton planted areas (ABARES, 2020). 

The Australian cotton crop is set to increase coming off a historical 12-year low, with the production of 590,000 bales for the 2019-20 season. Forecasts from ABARES predict the production of 1.7 million bales for the 2020-21 Australian cotton crop. The recharge of the water storages, soil moisture and on-farm water storages will have a significant influence on the forecast versus actual area planted for the 2020-21 crop (ABARES, 2020). 

Read more from ABARES.

Wheat production 2020-21

With the recovery of Australia’s wheat production following three consecutive years of below average production – significant rainfall from February onwards has provided optimism and a positive outlook for the season ahead – particularly in the New South Wales and Queensland cotton growing regions. The wheat crop 2020-21 is forecast to be the largest crop since 2016-17 harvest (ABARES, 2020). The coming summer crop planting will be influenced by many factors, such as the success of the winter crop going forward for the remainder of the season, commodity price, soil moisture, water catchment and water storage recharge. 

Read more from ABARES.

BOM Climate Outlook: July – September 2020

There has been a significant wet start to the year, despite receiving drier than normal June rainfall for most of Australia. Murray Darling Basin storages have risen by an average of 3% since last measured in May. The Bureau of Meteorology updated their July-September ENSO outlook, which is indicating La Nina watch, following significant cooling of the Eastern Pacific Ocean. The beginning of July will be drier than normal, under the influence of the current positive Southern Annular Mode. BOM indicate that July to September is likely to receive above average rainfall. Click this link to watch the full BOM July-September update.