Australian cotton is all but picked with many producers left with the toughest decision of the season – how and when will I price my cotton (if they have not done so already)? Many growers have tendered a percentage of their cotton for cash flow purposes with the balance being sold 'on-call' to the deferred futures months or committed to warehouse unpriced. Basis has firmed with a lower futures market.
Yields have been mixed with the majority of cotton being of good quality – base grade or better. Micronaire seems to be at the higher end of the range, but still within base grade with minimal colour issues. Quality will certainly be the key this year for Australian cotton in a surplus season as any low grade cotton will be competing with US grades which will need to be cheap to sell.
marketing@alchempro.com
