Cotton production in Australia, the world’s third-biggest exporter, may drop 9 percent this year as drought curbs planting in Queensland state, the country’s second-biggest grower, according to an industry group.
Cotton crops damaged by flooding in Australia, the fourth-largest exporter, may partly recover in the next few months helping to maintain the production outlook, Australia & New Zealand Banking Group Ltd. said today.
Cotton production in Australia, the world’s third-biggest exporter, may decline to the lowest level in at least three years as drought curbs crops and water availability, according to a growers’ group. Prices advanced.
Flooding and heavy rainfall caused by ex-tropical cyclone Oswald that may damage some cotton crops in Australia, the world’s fourth-biggest shipper, will boost production in other regions, according to a growers’ group.
U.S. stocks rallied the most this year amid better-than-estimated earnings and jobless claims, while the euro rose and German bonds fell as the European Central Bank left interest rates unchanged and refrained from adding stimulus. Gasoline, nickel and zinc led commodity gains.
The worst U.S. crop conditions since the dust bowl era of the 1930s are tightening domestic supplies of cotton and boosting prospects for a rebound in prices that fell more than any other commodity this year.