Australia: Cotton and Products Annual

Australia's cotton production for marketing year (MY) 2026/27 is forecast to increase modestly to 4.9 million bales, up from an estimated 4.65 million bales in MY 2025/26. This is partly driven by the prospect of improved irrigation water availability in northern production regions which is partially offset by reduced water availability in southern areas. Below-average global cotton prices, a strengthening Australian dollar, and the risk of rising input costs are expected to constrain more substantial production growth. Exports in MY 2026/27 are forecast to decline to 4.7 million bales, down 23 percent from an estimated 6.1 million bales in MY 2025/26, which was the third-highest export level on record. The decline largely reflects trade timing dynamics rather than a sharp contraction in underlying production.