Australian Cotton Output Seen Dropping as Drought Hurts Crop

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.

Output in 2013-14 may be less than the 4 million bales forecast in September, said Michael Murray, policy manager for Queensland and water at Sydney-based Cotton Australia. That compares with a crop of about 4.4 million bales in 2012-13, and the record 5.3 million bales harvested in 2011-12. An Australian bale weighs 227 kilograms (500 pounds).