UPDATE Movement of the 2025 crop has certainly picked up pace in recent weeks, with Australia’s efficient supply chain now progressing a crop of around 5.4 million bales to market. While this season’s crop hasn’t been of the highest grade, demand from export markets has remained encouraging. Spinners continue to recognise the value of Australian cotton - particularly when compared to other origins. Conditions in the export market remain somewhat subdued, with broader macroeconomic concerns dampening activity. As a result, most enquiries from spinners are for nearby shipment windows - an arrangement that aligns well with Australia’s rapid supply chain capabilities. The ICE Futures market remains range-bound within a broad 64 to 70 cent band, and at this stage, there is little indication of significant movement in either direction. In the US, the crop is now in the ground, with recent rainfall in West Texas raising hopes that production could reach 14 million bales. ACSA has been active on both the global stage and domestically. Internationally, our CEO has led the push from our MOU partners, engaging with Indian authorities over their proposed restrictive import requirements. Domestically, we are progressing the rollout of our industry committees, which will examine key post-farm gate issues and provide recommendations to the ACSA Board. A busy and productive time for ACSA.

CROP UPDATE

• Harvest is in full swing with more than 90% picked
• Picture-perfect harvest conditions at the moment
• Quality is expected to vary - from premium grades to lower ones
• Ginning of the 2025 crop has only just ramped up to full speed and classing numbers will now closely follow

STRENGTH & LENGTH TRUMP COLOUR

by Michael O’Rielley

It goes without saying that Australian growers and merchants are disappointed that early-picked cotton was weather affected and has experienced colour downgrades this season. Yet it's important to remember: colour isn’t everything. Australia is globally recognised for producing some of the highest quality cotton in the world - a reputation built on a unique mix of favourable growing conditions, cutting-edge farming practices and a commitment to sustainability. As global demand for premium fibre grows, Australian cotton remains a benchmark for quality and responsible production. At the heart of this reputation are key attributes like fibre strength, length, uniformity and micronaire. These characteristics are what truly matter to spinners, and they remain intact even in bales affected by lower colour grades. While northern regions experienced rain-impacted harvest conditions, leading to some loss of brightness and colour downgrading, Australian cotton still offers distinct advantages. Our careful harvesting and ginning processes result in cotton with minimal foreign matter, enhancing efficiency, reducing waste and maintaining our reputation as a spinner-friendly fibre. It’s also worth noting that cotton picked later and in southern regions has not been affected by rain and retains its signature bright white colour. This volume is considerable and ensures that a range of quality grades will be available to suit a variety of spinning needs. In short, while colour downgrades are never ideal, Australian cotton continues to deliver where it matters most good fibre characteristics, performance, reliability and processing efficiency. A season like this offers a diversity of grades and opportunities - something for everyone.

MEET YOUR SUPPLY CHAIN PARTNER

StoneX is a global financial services firm with a rich heritage in commodity trading as well as risk management. StoneX has been active in the raw cotton trade since 1952 (with the acquisition of Cotton Distributors Inc) with nearly 70 years of experience in moving cotton from field to fibre with a focus on quality, integrity and traceability. StoneX sources cotton from key producing regions including Australia, South America and Africa, assisting   clients optimising supply chains and developing business strategies. StoneX Commodities Solutions also provides over a century of experience in providing tailored solutions to help manage risk and maximising profits in soft commodities such as cotton, dairy, grains and livestock. www.stonex.com