In April, Australia exported 22,286 tons of cotton, and the export volume from August 2018 to April 2019 reached 624,000 tons, the highest in the same period in recent years. In 2017/18, the number of Australian cotton export contracts reached 1.036 million tons. As a result, there is almost no cotton stock in Australia, and new cotton has been shipped in May 2019.
The Australian Bureau of Agricultural Resource Economics estimates that in 2019, Australian cotton production was 485,000 tons, but the quality was uneven. At present, the only unsold stocks of Australian cotton are short-staple cotton, GM and SM are quoted very little, M-grade cotton is the leading price, and the basis of M 1-1/16 cotton is 1250, M 1-3/32 Grade cotton is 900 points, and M 1-5/32 grade cotton is 2200-2300 points.
From the current situation, there is still no obvious rainfall in Australia. This year's output is a low point for many years. The only inventory is low grade and it is difficult to sell. Textile mills that require high-grade Australian cotton will face long-term supply shortages. There will be no high-grade Australian cotton in January-April 2020, even longer. From May 2020 to May 2021, there was basically no inventory buffer in Australia. In the case of severe water shortages, the quality of Australian cotton in 2020 is also very uncertain.