Namoi ASX Release Trading Update 2019
Persisting negative local and global market conditions have resulted in the need for Namoi Cotton Limited (‘Namoi’) to update the market on key factors which will impact the financial results for FY2020 and FY2021. These include:
• the ongoing severe drought conditions prevailing in inland New South Wales and Southern Queensland, and the related impact on cotton production and hence cotton supply to our ginning and marketing operations, impacting the balance of FY2020 and more significantly FY2021;
• current international commodity trading conditions having reduced demand for raw lint cotton and resulted in softer cotton prices. This has had a negative impact on delivery volumes and pricing of cotton for the Namoi Cotton Alliance (“NCA) business, of which Namoi Cotton has a 51% interest; and
• a significant increase in the global supply of cotton which is impacting the trading margins for NCA.