A Southeast Australia region whose production of cotton is high will suffer reduced harvesting of the soft fiber because of flooding, according to Bloomberg.
More than 18,500 acres of crops in Theodore have been ruined as a result of heavy rainfall, according to David Bone, lead spokesman of Cotton Australia of Sydney. Australia is the globe's fourth-biggest exporter of the soft commodity. Theodore is part of the state of Queensland.
"Around Theodore, crop has been washed away," Bone told Bloomberg. "There would be losses in other areas but you need the water to go off the land and for the crop to attempt to recover before you can really say what the situation is."
Cotton for March 2011 delivery slipped 0.0036 cents to settle at $1.44 per bushel just before 1 p.m. Eastern Standard Time in New York.
Chinese demand for the soft commodity pushed up cotton's price to record value last week amidst conjecture that demand would trump supply.
The Meteorology Bureau reports Australia's spring, from September to November, was its wettest thus far.
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