Australia forecasts increased cotton, sugar output, less wheat

Cotton production in Australia, the fourth-largest shipper, may reach a record next year after rains filled dams, while sugar output may gain even after cyclone and flood damage, according to the government's commodity forecaster, reports Bloomberg. Output of cotton may climb to 1.1 million metric tons in the year from July 1 compared with 839,000 tons this season, and the sugar crop may rise to 3.85 million tons from 3.62 million, the Australian Bureau of Agricultural & Resource Economics & Sciences said in a report today. The wheat harvest may drop 7.8 per cent as lower yields offset an increase in the area, it said. Global prices of farm commodities have surged on harvest disruptions and stronger demand, with the Food and Agriculture Organization's World Food Price Index reaching a record in January. Increased Australian output of sugar and cotton may be part of a global response to the agricultural gains. Cotton on ICE Futures U.S. in New York reached an all-time high $2.0893 a pound on Feb. 18, while raw sugar gained to a 30- year high of 36.08 cents a pound on Feb.