Cotton production in Australia, the world's fifth-largest exporter of the fiber, may more than double in 2009 after recent rain benefited crops.National output may be 1.4 million bales, up from 600,000 bales a year earlier, Namoi Cotton Co-operative Ltd. said today in a statement. The Wee Waa, New South Wales-based company said it will be responsible for selling more than 35 percent of the crop. “The larger cotton crop will facilitate increased utilization of ginning and warehousing infrastructure,” Namoi Cotton said. Australia's cotton production is forecast to expand for the first time in four years in 2008-2009 as drought conditions ease in growing regions.
Output had shrunk as lingering dry weather reduced water supplies available for irrigation. Cotton for March delivery rose 1.5 percent to 45.89 cents a pound when last traded yesterday on ICE Futures U.S. in New York. The commodity has dropped 33 percent this year.
Today's forecast compares to the 1.36 million bale estimate made by a U.S. Department of Agriculture attaché report released on Dec. 1. A bale weighs 480 pounds. Namoi also said profit excluding tax and payments to farmers for the year ending Feb. 28, 2009, will be A$8 million ($5.5 million), down from an earlier prediction of A$12 million.
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