Cotton Prices Eased, Buyers Hope Prices Fall with Futures

Commodity cotton prices for current season crops have eased from the heady heights of $1000 a bale a month ago to between $700 and $800/b this week as yarn buyers back away from the market, hoping prices will fall in line with futures.

Namoi Cotton trading manager Clinton Uebergang of Toowoomba, said mill operators were also holding back because they were unable to sell yarn at the moment and weren't looking to buy more cotton. He said prices for 2012 crop had also softened to below $600/b, largely due to the high value of A$.

Meanwhile, big rains across much of Queensland's cotton belt this week have brought a halt to an already delayed cotton harvest. In Central Queensland, where growers have battled weather throughout the growing season, AgForce vice-president Ian Burnett said this week's heavy rain was another blow.

"Over the past six weeks there have only been six days we have been able to pick which has held things up enormously," he said. "It is taking its toll as far as quality goes."

Mr Burnett said of the 30 percent of the Emerald crop that had been inundated in earlier flooding, a portion had been lost completely and the rest was set back. "The other 70pc is ready to harvest now and it has had varying impacts from the extended rain periods. The yields have been mediocre," he said.

The wet weather delays in Central Queensland have also played havoc with the picking schedules for contractors, some of whom have already moved to southern areas to meet their commitments.

At the same time, with an estimated 30 percent of the year's crop being stripped by round bale pickers, a shortage of wrap is creating further delays.

In the border areas, Mungindi Cotton Growers' and Water Users' Association president Glen Price said some producers had finished picking while others had yet to start.

"The early dryland cotton has been picked and the late hasn't been started," he said.

"In the drier years we would have started in the second week of March but didn't start this year until the last week in March. Yields so far have been very good."